All installment payments must have been made within the month due for the 12 month period prior to the short sale   

The short payoff must serve as payment in full on the existing liens and the existing mortgage servicer may not require repayment of the difference between the mortgage balance and the short payoff   

Borrowers may not obtain a short sale to “take advantage of declining market conditions and purchase, at a reduced price, a similar or superior property within a reasonable commuting distance” (Borrowers who obtain a short sale due to employment relocation that is not within reasonable commuting distance from the property being sold short are eligible for FHA financing, provided all other short sale and purchase requirements are met)

Borrowers in default on their mortgages at the time of short sale are ineligible for FHA financing for three years from the date of the short sale unless the default was due to significant extenuating circumstances and the borrower had satisfactory credit prior to the extenuating circumstance. To waive the three year waiting period for borrowers who were delinquent at the time of short sale, banks also requires a Total Scorecard “approve” or “accept” response for the new purchase transaction

If you have any questions give me a call at 651.210.9593 or email me at jay@jaydacey.com and I’d be happy to help.