good News under FHA You only have to wait 3 years after the short sale close date to buy again
Mortgage Loan Manager
we are not a bank we 're are better
The rental market was not under valued in the market as homes were. Rent did not drop 50% because of the value of the property. By saying you are moving to a cheaper area , would need more details of what you describe as a cheap area. I would describe it as a home that has less space , rooms , or is not a single family home . It can also be in a very secluded location far away from stores and highways.
Also, by moving to a cheaper area , are you saying you are going to buy or rent in another area. If you are going to buy , i would not move areas . Your short sale house was evaluated and given a value due to market and property value. So , any home in that area will have a fairly similar value and if you are comfortable and can manage paying that value = stay .
But like most have stated , you or the persons that were involved in the short sale will not be able to purchase a home with a loan anytime soon.
Thanks and good luck,
You go & rent, wherever you want to go, where it's affordable for you. Write a Cover Letter about yourself, your family, why you had a short sale "we bought a home with our great credit during the boom, our payments just became too high & we couldn't afford $4,000/mo anymore, but we can surely afford your home Mr. Lanlord for just $2,500/mo & here's why; we have great jobs, stable income, our credit just stinks, but we're working to get our credit score up, we'll make great tenants & take excellent care of your home as if it were our own". etc.
I don't look back on this same Trulia posting for answers after mine. Shoot me an email directly if you would like to talk about this further.
Emily S. Knell
Realtor Since 1996
Realty ONE Group
100% short sale success ratio
& I can Prove it
Renting would be your option. And of course, based on your experience, make sure your rent plus other expenses are manageable and well within your comfort level.