I think you brought up a good point that is better left up to the mortgage professionals. There are a whole lot of if's and scenarios that fit into the short sale realm.
At the end of the day best advice is to team up with a mortgage lender ASAP to figure out the best route for someone in this situation.
Even though I do not do mortgages in MN I feel compelled to comment.
It is Bankruptcy that is 2 years and foreclosure that is 3 years. Technically there is no waiting period for a short sale. However a short sale is treated like a foreclosure if there is a late 12 months before the short sale, a default ever. Also if there is the appearance that the short sale was a strategic short sale, it is a default. There must have a darn good explanation. And they would need a Desktop approval.
Here is the problem, Most of them have a 30 day late, so = default = wait 3 years.
Of the rest, most resemble a strategic short sale, so = default = 3 years.
Or they do not have the income or assets to get the desk top approval, so = denial.
So if they have a good reason for t he short sale, they can get a desk top approval, and had no late payments or defaults before the short sale then it is possible. It is just that I have never seen it. I know you are an agent, but a lender saying they can do it, is much like those 2.25% rates they advertise all the time. If you can qualify you can get the rate; the problem is that no one qualifies so it seems wrong to set those expectations. I am always careful to try to not waste people's time, especially agents who can find t hemself bankrupt spending too much time on buyers who cannot buy. There is a chance that something like this could go through so I guess it does not hurt to try.
- Short Sale is still 2 years
- Foreclosure is still 3 years
You CAN technically go FHA right away if you do a short sale pre-foreclosure and thus are current on house payments. Something a lot of people may not know. Anyways, Elk River is where my brokerage is so if you have any questions feel free to contact me directly through my profile.