According to Mortgagee Letter 09-52, there are two scenarios to consider: Borrowers Current at the Time of Short Sale, and Borrowers in Default at time of Short Sale. If you were current at the time of the short sale, and all of your mortgage payments were made on time 12-months prior to the short sale, then you are eligible for a new FHA-insured mortgage. In the 2nd scenario, you would have to wait three years from the date of the short sale.
However, since the default was due to â€œcircumstances beyond your controlâ€, such as your childâ€™s illness, then, the lender may make an exception to this rule. You will also have to show that your credit was satisfactory prior to your childâ€™s illness.
I hope that this information is helpful, and that your child has recovered. All the best!
Dianne Y. Ayala Steffey, MBA, CLU, ChFC, NMLS #267658
Sterling Mortgage Services NMLS #373771
2929 Mossrock, Ste 222
San Antonio, TX 78230