Hi Sal,

Conventional guidelines allow a person to get a mortgage after 2 years if they have a Short Sale in their history. A foreclosure will require 5 years to elapse in order to get a conventional loan.

If your mortagge is owned by Fannie Mae or Freddie Mac (note: the company you mail your mortgage payment to is not likely the underlying investor, just the "servicer") then you may be able to get a great loan modification. Your interest rate can get lowered to 2%. You will still owe the entire balance of your mortgage, however.

For more info and to verify if Fannie Mae or Freddie Mac actually owns your mortgage, go to:

http://www.makinghomeaffordable.gov/

Hope this helps.

All my best,
Alma
Alma Rose Kee, P.A.
Real Estate Consultant
Charles Rutenberg Realty, Inc. http://www.SoldOnTampa.com
813.244.9898

Sal, what you have been told is correct for the most part. There are a myriad of obstacles to be overcome for the best outcome. The best outcome can only be acheived by working with a professional who has expereince neogiating with a wide spectrum of banks.
The prime objective is to have the homeowners debt 'forgiven' without a commitment to repay the defaulted amount via a promissory note or other collection vessel.
Yes, you will take a credit hit. The 'hit' includes the months and months where no mortgage payment was made, utiliiities were unpaid, HOA fees were unpaid, and insurance lasped in addition to the balance write-off the bank is required to take.

Sal, if you are facing a short sale situation, let me know if I can be of any help or if I can provide you additional information. Waiting for the situation to become worse is not advisable.
Annette Lawrence, ReMax ACR Elite Group, Inc
727. 420. 4041

That is my understanding, as well.

However, if you don't NEED to sell, and you are considering this because your mortgage is not affordable to you any longer, the new regulations may give you options for refinancing or loan modifications. Make sure you've exhausted those options before doing a short sale. However, DO a short sale before you let your home go to foreclosure.