Tracy S., 59, a technical writer for a large bank, divorced her husband just as the housing market spiraled downward. They were forced to sell their home, just outside Phoenix, for less than they owed, and the bank agreed to absorb the difference, about $25,000.
“Our ability to pay and our credit was perfectly fine, but neither of us could keep the house individually,” she said. Ultimately the house sold for about $175,000, or 21 percent less than they originally paid.
Three years after the short sale, Tracy is a homeowner once again. She bought a three-bedroom house for $190,000 in another Phoenix suburb this year, and qualified for a traditional mortgage with a 20 percent down payment.
“I believed and was told that I was not going to get a mortgage for the first two years after the short sale,” she said, asking that her last name not be used to protect her privacy. “But after that, I hadn’t really planned and didn’t think I would be able to get a mortgage.”
via Years After the Market Collapse, Sidelined Borrowers Return – NYTimes.com.