I recently talked to realtor friend of mine and he said in Minnesota, where there is up to a six-month redemption period following a sheriff sale, you can still submit a short sale to your lender. He said he's done many successfully and, in his experience, the banks are becoming easier to work with on them. He said that once the sheriff sale occurs, the bank can no longer seek a deficiency judgement and therefore there is no risk to trying a short sale if you have significant money in the bank and a good paying job. The obvious advantage is, if it's accepted, it's recorded in your credit report as a short sale versus a foreclosure, so you can buy another home sooner and don't have to check the box that asks if you've ever been foreclosed on.
Does anyone know if this is legitimate and if there are any downsides or hidden risks to it? It seems like once the sheriff sale has occurred there's no risk to at least trying this alternative, but perhaps I'm missing something.
Thanks in advance for any information or clarification that can be provided.