I live in Massachusetts. The information you provide here is very helpful. I have to admit the frustration level I have about short sales is beyond what I ever imagined happening. I am not looking for pity as I defaulted on my loan. Bottom line. My husband and I bought our condo in 2004. We were young and naive. We fell for the "come let us give you a loan and put no money down. We will just give you an 80% mortgage at 6% interest and a second mortgage of 20% at 8% interest." We were promised that we would be able to refinance within a few years and not to worry about the fact that the second mortgage would balloon. Being naive (like I said before) we were blinded by the excitement of buying our new home. Well, the market plummeted and we all know where that left all of us....upside down. My mother in law became ill, my father in law became ill, my brother committed suicide, and a plethora of sad soppy events occurred. On the upside, two beautiful children were brought into this world as well but with one problem...we had two bedrooms. We tried to refinance but were told "Sorry we can't help you as your property is not worth the amount you need to refinance." After a lot of praying and tears the best option we were convinced that would be best for us to do would be to short sale our condo. After 2 years on the market it finally sold. September 10, 2013 was the date of our names being replaced by the new owners in the house of deeds. We were under the assumption that if we worked on our credit for a while we could try to get a mortgage in as little as 2 years. We decided to try our luck today (5 months shy of our two years) and learned of the disheartening news that "We would love to help you but we simply can't" from the few places we went to. Again, not looking for pity, but my husband and I make enough money and have such little debt that we would qualify for a loan (or so we were told by one of the banks we went to today) but that short sale has their hands tied until our 3 year mark. We are good, hard-working people who were naive and uneducated when we bought our first home. I hate that we, among many other middle class Americans, are being punished longer for not only our mistakes but also the mistakes of lenders back in 2004 (who we were told today that the loan they gave us is illegal now).