So we found out the reason we didn't get the house we bid on.

First off, a short sale is basically when you're trying to sell the house for less than you owe to the bank. Usually, that's due to declining house prices or if you got an outrageous ARM that just increased your payment beyond reason. Well, it turns out that there's a law or something from the FHA where they won't allow short sales for houses that were rental property. We were surprised that the seller's agents didn't know this considering they specialize in short sales. So that house will instead have to go into foreclosure, and if we're still house-less in 5 to 6 months, we may be able to get at auction.

To which we say, screw that. No house is worth the hassle.

Wish us luck on the renewed house-search! We've already got a few prospects, but we're not 100% sure yet.