Actually it is very easy to get a loan after a short sale or foreclosure and a lot of people are jumping back into the market at these low prices and low rates. It turns out the smarter people are the ones who got out of their upside down property EARLIER in the crash (vs. later), and now they are already back in the market approved to for a a loan to buy. I have a friend in the Bay Area who already bought again at a killer price with a 4% rate after walking away from his massively upside down property in late 2008.
Here are the wait times:
*short sale*
-2 yrs VA
-2 yrs conventional (with 20% down, 4 yrs with 10% down)
-3 yrs FHA
*foreclosure*
-2 yrs VA
-3 yrs FHA
-7 yrs conventional
