Post Short Sale, Foreclosure, and Bankruptcy Mortgages

Post short sale, foreclosure, and bankruptcy mortgage programs are here to help everyone get the best out of a not-so-great situation.

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We want to hear your story!

Life is full of ups and downs and so maybe you hit a rough patch – just tell us what happened and we’ll see if we can still get you a home loan. You shouldn’t have to wait for years.

The Details

There are times when a short sale, foreclosure, or bankruptcy is the only way out. Maybe you’ve had a sickness or death in the family. Or maybe you couldn’t keep the family home after a divorce. None of these things is your fault, so why should you have to wait four to seven years before you can get another home loan?

That’s right. Conventional lenders need you to put your life on hold until the official amount of time has gone by. But we’re a credit union and we can do things differently. Give us a call and UMe will listen to your situation and find out how you ended up in this not-so-wonderful scenario.

Just show us you’re a reliable borrower, and we’ll lend to you when others can’t (or won’t!). Our post-short sale, post-foreclosure, post-BK loans are here so you can put all that behind you and move on with your life. Let us help you write a new feel-good story!

The Good Stuff

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Full Picture Consideration

Your credit reports and bank statements will show us what happened – but we want to hear the full story from you.

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No Seasoning Required

You can skip the usual holding period when you have to show funds for your down payment and closing costs in your account.

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Competitive Rates and Terms

We know you’re responsible and that’s why we can get you a competitive APR even after a major financial event.

Short Sale Mortgage Rates

Short Sale Mortgage Rates





No seasoning on Short Sale Loans, Foreclosure Loans, or Bankruptcies




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A little list of items you'll need for a short sale mortgage:

We want to give you the opportunity to start again with your best foot forward, whether you’re applying for a mortgage after a short sale, a foreclosure, or a bankruptcy event. You can get started by gathering the most recent or current versions of these documents:

  • Photo ID and proof of address (but of course!)
  • Bank statements and evidence of any other assets
  • Tax returns (can’t be helped!)
  • Pay stubs, W-2s, 1099s – so we can guide you towards a dream home (within your budget)
  • Gift letters (maybe a long lost cousin left you all their worldly goods?)
  • Evidence of your renting history or previous homeownership (of course you’ve never missed a payment!) 
  • Credit history – we’ll ask FICO for your report but it’s a nice idea for you to find out your score, too
  • Documents relating to the short sale, post-foreclosure, or BK program – just ask us for full deets

Our loan process after a short sale isn't too different!

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First up, you can give us a call. Let us hear your story in your own words and let us see if we can help you. Come into a branch if you prefer!

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We’ll take a good look at your paperwork, check you’ve been responsible since the event, and maybe ask for a little more info.

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All going well, we’ll let you know you’re pre-qualified for your next mortgage loan with a potential loan amount, term, and rate.

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So then you can contact a Realtor and start house hunting with your financing ready to go – no seasoning needed.

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Together with your Realtor, we’ll help you come up with a competitive offer on your new home.

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Once your offer is accepted, we’ll help you close on your new home and start making payments.

2 great payment options, the choice is yours!

  • Payroll Deduction

    If you have a loan with the credit union, payroll deduction is a convenient way to have your loan payments automatically deducted from your paycheck.

    To find out if you’re eligible for payroll deduction, contact your employer’s benefits department. If you already have payroll deduction set up with the credit union and want to set up automatic loan payments, call us at (818) 238-2900.

  • Automatic Transfers

    Automated transfer allows members to transfer funds within UMe accounts on a recurring schedule.

    You can set up an automatic transfer to make your loan payment, so you won’t have to think about it each month.

    To set up an automatic transfer, fill out our Share to Loan Transfer Form or give us a call at (818) 238-2900.

FAQs about Short Sale, Post-Foreclosure, and BK Mortgage Programs

That is a fair question! And our answer comes in a few parts.

The first reason is that UMe is different because we want to serve our community here in California, not just make a profit like other financial institutions. We want to get to know you and your story and we want to help you in any way we can. The more information you can give us about your financial event, the better!

The second reason is that we’re a credit union. Credit unions have different regulations than the major banks and so we don’t need to wait the standard period after you’ve been through a short sale, foreclosure, or bankruptcy.

To get a little more technical, we don’t need your funds to be “seasoned” (sitting in your account doing nothing for a certain period of time) because we don’t sell our home loans onto the secondary market, to organizations that see you and your loan as just numbers on a balance sheet.

Feel free to reach out to one of our home loan gurus to find out if we can help you in your personal situation! Let’s turn your life into a feel-good story. It’s not too late!

The name short sale refers to the fact you probably have to sell your home for less than it’s worth. (It doesn’t mean the sale process is shorter than a regular sale.) Short sales could apply to your primary residence, and investment property, or even a timeshare.

You may need to sell your home through a short sale if you’ve fallen behind on mortgage payments and can give your lender evidence that you don’t have any assets to make up for the missed payments. You may also owe more than the home is worth (maybe due to a fall in the value of the housing market, or just a drop in your home’s value).

As the homeowner, you may negotiate a sale with a buyer – but the deal must be approved by your lender. Because you’re likely in debt, all the money from the sale will go to your lender. (And you might have to pay off the difference if your home sells for less than the loan balance.)

To negotiate a short sale, you need a real estate agent who is experienced in short sales – plus a trusted lender on your side.

After your short sale, you might find it hard to get another home loan from a conventional lender. You may need to wait four to seven years. But UMe wants to hear your story – and maybe we can give you a loan right away.

If your home is foreclosed, it means you can’t pay the mortgage and so your lender now owns the home. This means it will say “Bank Owned” on your real estate listing. Foreclosure sales are usually by auction and the lender isn’t allowed to profit from the sale – they can only try to recoup losses.

After your foreclosure, you might find it hard to get another home loan from a conventional lender. You may need to wait four to seven years. But tell UMe what happened – and we’ll see if we can get you a loan with no waiting period.

When you can no longer meet your debts, you may choose to file for bankruptcy and you may lose your home during the proceedings. If that happens, your home will go into the hands of a court-appointed trustee who will sell the home on your behalf and then pay as much of your debt as possible.

UMe might be able to give you another home loan following your bankruptcy. Just tell us the details and we’ll take a look at your supporting documentation and see what we can do to help you move forward.

Let's open the door to the possibilities!

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