OK...just met with new clients from a new realtor just yesterday. I've posted on this a number of times, but being the new year and all....let's revisit this issue. This sounds almost too good to be true. But it is true. You can't do it on a conventional loan. You can, however, do with an FHA mortgage with:

THREE CRITICAL CAVEATS!!!!!

1. The bank CANNOT be reporting the current loan as deficient;

2. The borrower can't have any 30 day lates reporting either.

3. If FHA puts a claim against the current loan, that'd be a deal breaker as well;

I HAD 5 LAST YEAR AND 4 QUALIFIED!

We've done a myriad of them at our company this year. There are reasons why some folks who sell a home short, should be allowed to buy immediately, but great discretion needs to be exercised.

My buyer was denied by two other mortgage companies over the last two months. The other mortgage banks didn't look at the 4155 (or the FHA guidelines). Realtors, this is critical. A buyer still needs to qualify, but if they sell their home in a short sale and meet both of the aforementioned criteria, then....you have another happy buyer!

Loan officers need to have the support. They need to know the guidelines. Buyers do have options.