dealing with clients that have short sold properties and FHA loans... The agent below offers to forward several reputable lenders to you, if you do not have one you trust and who has the experience described above.
Good Luck to you...
Edith YourRealtor4Life and Chicago and North Shore Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
Your best bet is to talk to a reputable lender and have them pull your credit and work with underwriting parameters. If your scores are anywhere near 700, you just might qualify. I have a few really good lenders you could check with if you don't have one already. Let me know if you need a referral.
I wish you all the best because it sounds like you truly got stuck in a bad situation and did your best to resolve issues without causing financial damage to yourself or the lender. It's too bad that the lenders are taking so long to really work out problems and help people. The market continues to change and there are no set rules for anyone to follow but I do see some improvements, especially in short sales.
Work with a good agent (all agents who represent you represent ONLY YOU unless you sign an agreement saying that the listing agent for the property you're interested in is also going to represent you as the buyer for that same property: AKA DUAL AGENCY). That agent will refer you to a great lender who will guide you through the process. If the time isn't right just yet, they'll work with you to get you where you need to be.
I'm glad to help in any way I can.
When you buy - you should consider using an Exclusive Buyer Brokerage (there are just a few in the Chicago area, and my company is one of them) - because they are 100% on your side, negotiation experts, and never represent sellers - so can never be half on the seller's side - as a traditional buyer agent can be (if they show one of their own listings for example.)
Feel free to visit the Buyer Broker Chicagoland web site for more information.
Conventional loans will require a 2-year minimum, but that assumes that you make a 20% down payment on the new purchase. FHA loans will require a 3-year wait. However, you should work with a lender who can run your credit as you near these timelines and see if there are other aspects of your history that must be addressed as well.
I created a short video that covers your question as it gets asked so frequently.
My whole short sale process was a hot mess - I was on the MLS for 12 months prior to giving in to the short sale, then the late payments and then got tossed around by my original lender and the two subsequent lenders. You'd shake your head at the things that happened during showings (building and area was a hot mess too) and the run around with the 2nd developer and defunct HOA. Ironically, the short sale closed 2 years to the date I first listed on the MLS. Hopefully this process has changed a bit, but it doesn't really do much for those of us that were affected by the unorganized mess it has been. My goal is to find a permanent single family home at some point in the future and move on from this unfortunate series of events.
My credit score never really went below 700 throughout the ordeal but was near 800 at the start. I have purchased a car since and refinanced and consolidated debts to pay off since then as well. My credit score is still in the 730-750 range and my income is very good.
I'm just looking to see what options I may have and when, so I can focus my financial planner better and possibly buy a house at some point in the future.