You can buy again, using an FHA mortgage, just one day past closing on a short sale, IF:

1. You had no mortgage lates in the 12 months before your short sale, and
2. The loan on the home you sold was not a FHA mortgage

With any other loan program you would need to wait a minimum of 3 years to qualify for a new home loan. So being able to buy right away is incredible; and good for the folks at HUD for allowing this.

But that is the good news.  The bad news is that most lenders will not approve a short sale until the homeowner is at least 90 days delinquent on the mortgage.  So, even though this is allowed, it will be infrequent that the circumstances and the stars align to allow the sale.

But, if you are in the same boat as many past and present clients that I have, struggling to make your payments because of changed circumstances – layoffs, downsizing, reduced hours or simply that all employees agreed to a pay cut to remain employed – then you do now have something to hang on for and make sure you make the payments on time.

There is a lot of talk about “strategic default” by homeowners who are under water on their mortgage.  Before you consider that, keep up the good fight, and let me help.  I know several Realtors who are adept at negotiating a short sale  on a property – and if they are able to step in and help you negotiate the short sale while remaining current on your mortgage, then you will be in a position to take full advantage of the depressed prices on homes and purchase something that you will be able to handle, given your current economic circumstances.

So, consider the short sale if you need to; and keep up the good fight with the right team behind you. You may be very happy at the end of the process that you did.

Call with questions 800 429-7283