To your second question, unless you fit an exception, yes.
Also, there is no 4 year wait after a bankruptcy with FHA financing, it's a 2 year wait for a Ch 7 BK.
"Double dipping" may be a term that is used in the bankruptcy world, but it has no applicability to mortgage financing. Mortgage financing always goes by the most recent event, which in your situation was the short sale. Be glad that it wasn't eventually foreclosed on instead, as then some lenders would require you wait the 12 month Michigan redemption period + 3 years after the foreclosure.
You are welcome for this advice, and now you know you will need to wait until November of 2013 to apply (3 years + 1 day after the short sale occurred to be precise) for FHA financing. When you apply, be prepared with a copy of the Final HUD-1 from the short sale to document it's date.
If you have a 20% down payment, then 2 years after the short sale you could apply for conforming financing, as Fannie/Freddie financing only require 2 years (with a 20% down payment, 4 years with a 10% down payment).
Shane Milne | Lending in all 50 states | NMLS #81195
Also, the mortgage discharge is scheduled to be removed from my credit report in 6 months, will I still have to wait til November of 2013?