Three Year Plan After A Short Sale

http://TheCapstoneTeam.com (510) 432-0617 Derick Drumm of The Capstone Team at Keller Williams - Two Names You Can Trust - discusses a plan for purchasing a home after a short sale.

Let's start by assuming that your monthly mortgage payment is $3,000. Let's also assume that your short sale takes six months. Once the short sale closes, you have potentially saved up $18,000.

You will now rent for the next three years at a rate of $2,000 per month. This is $1,000 less than your previous mortgage payment, and you will put away $650 of this per month to save for a future down payment.

During the next three years, we recommend getting credit counseling and credit repair services to clean up your credit in preparation to qualify for another loan.

In three years time, you will be ready to purchase another home at a value of $350,000 using FHA with a down payment of 3.5% or $22.750.

Your principal and interest payment will be $1,707. Add property taxes of $355 and Insurance at $100 per month and your total monthly mortgage payment will be $2,142.

Note that this is an EXAMPLE ONLY. It is impossible to predict what interest rates will be three years in the future and each individual's or families situation will be different. Contact us, and we will customize a plan to fit your situation that will allow you to purchase another home in as little as two to three years.

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