What Happens To My Credit If I Do A Short Sale?

HUD has issued a mortgagee letter to lenders and underwriters explaining that effective immediately, borrowers in default on their mortgage at the time of a short sale or pre-foreclosure sale will not be eligible for a new Federal Housing Administration (FHA) -insured mortgage for three years.

Distressed Short Sellers Locked out of FHA Loans

Read the entire article HERE.