My short sale story:
I purchased in 2007 for $520,000
in 2011 I still owed $475,000 and was approximately 200K underwater.
I was also facing a household reduction of income from $150K yearly to $100K yearly (Hardship!)
Home was listed in October 2011. I was free and clear in January 2012. No PMI or secondary loan. Just one Jumbo with Bank of America.
In January, before close, my credit score was 811 according to Experian
In March I ran my credit scores and got this:
The three report my short sale like this:
Experian - Account legally paid in full for lass than the full balance.
TransUnion - Settled - less than full balance
Equifax - Closed or paid account/zero balance/Settlement accepted on this account
I never missed a payment. Bank of America kept my last mortgage payment even though I moved out in the middle of the month. They also kept about $3,500 that was in my escrow account. I'm okay with that, They only got about $280,000 from the proceeds of the short sale.
I've been preapproved for a new home loan with Wells Fargo. But only if I buy a smaller sized home (not taking advantage of market conditions) or if I move to another city (not within a reasonable commuting distance). I'm testing thee waters now.