Short sales negatively impact credit reports. Most likely there will be a waiting period (e.g., two to three years) before qualifying for another mortgage. Contact several lenders to ask about their policies. For example, will verifiable hardships be considered? Will being current on mortgage payments prior to a short sale factor into the lender's decision? It may be possible to find a lender who will lend sooner after a short sale, but the mortgage may have a higher interest rate. Because high interest sub-prime loans contributed to foreclosures for many homeowners from 2007-2009, they should be avoided. While currently renting, work on improving your credit score and saving money for emergencies and the downpayment on a future home. Having money set aside for a larger down payment may contribute to more favorable terms from a lender.
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