There is a lot of talk about short sales and how they effect one's credit. I have learned that if a seller stays current on his payments right up to the closing of the short sale that he can immediately purchase a new home as long as he buys down. (Meaning that the new property has to have a value less than the one sold via short sale.)
Right now I am working as the listing agent on two short sales with Bank of America. What I like about the program I am using (cooperative short sale) is that an inital price is agreed upon ahead of time so the buyer knows going into the transaction what the lender will accept. It takes a lot of the ambiguity out of the transaction. One listing at 858 Neilson in Berkeley is listed at $465K. We know the lender will approve that price. By the way this property is open on Sunday 2/12 from 11-1. Come by and see what a bargain looks like. This house is tenant occupied and they have a small child who naps during the regular open house time.