If I understand you correctly: You haven't missed payments, you are current on all your bills, and you have good credit. This may not qualify for a short sale---the Bank does not have to accept short payment...there are guidelines each lender follows...many include hardship like loss of job, death of spouse, serious illness, each causing financial hardship. You have to show unemployment records, unpaid credit card bills, unpaid utility bills, etc. You have to show you have no other source of income...no ability to pay now or in the near future. Don't count on a short sale because you are upside down on your mortgage when you sell...

That said, you do have many other options: Talk to your lender ASAP. Ask for a loan modification or some other type of settlement...With your good credit and payment history the Bank my offer an unsecured line of credit for the $18K, or another loan and pay it off. The Bank may keep your same interest rate,,,may stretch it out over 15 or 30 years...

Best of luck.

Check out my website under FORECLOSURE PREVENTION for more information...or contact me directly for additional help.

Dana

Jimster,

Best case scenario, you are probably looking at 18-24 months before you can qualify for an FHA-insured loan. Your particular case may vary depending upon how your purchase and sale agreement was structured and how the provisions to address the deficiency amount with your loan servicer were written. It also depends on how your loan servicer reports the deficiency to the 3 major credit services. You will want to pull yours to check & see. In some cases, it may be inadvertently reported as a foreclosure, in which case, you will want to have such corrected.

One final comment. The rules in real estate, banking and mortgage lending continue to be in a state of flux. The rules yesterday are different from today which will likely change again tomorrow. If your plan is to buy another home, I suggest that you choose a trust loan officer to counsel and guide you on the path of credit repair and the steps you'll need to take to qualify for financing once again down the road. Also consult with a full-time professional Realtor who knows the area of interest to you so that they can provide guidance on market values when it comes time to make an offer on your next home. Best wishes - Ted

typically the short sale will affect your credit scores and they will not remain at 779 and 771. I can't tell you how far down they will go, but you can expect that they will go down. You need to talk to a mortgage lender now and be honest with them (they will find out when they run your history) and ask what you can do, how long it will take and what steps you should and shouldn't take until you can buy a home again.

I would start with Andy Perotti at Bankers Home Lending - He's a banker broker and he's got an underwriter in his office so he can tell you if any of the banks would be able to help you and how soon they would be able to help you. He may be able to find someone who can help you now, but if he can't he will give you good honest information that will help you.

His number is 636-949-7979 or 314-922-4653. Email is aperotti@bankershomelending.com. He's located at 2247 Bluestone Dr in St Charles 63303 - it's right off 94 between 70 and the page ave ext.

On the surface, by your decsription, you may not be harmed too signifiacantly by your short sale situation. There are a lot of questions that would be asked to determine the feasability of your qualifying for a loan, but you may find that you would only be penalized with a slighly higher interest rate than you otherwise would have qualified for. Make sure that you continue to make all other debt payments in a timely way which would then continue to support your FICO score. Call Pulaski Bank or a local broker and ask them. Good Luck!!