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Michael Emery had a decent post, but was in error about getting a mortgage after bankruptcy. FNMA/FHLMC require 4 years, FHA only 2.In a short sale, lender forgives difference between what you owe and what property sells for. You will need an EXPERIENCED agent to assist with this. Contact me if you need assistance with finding one.
Also, you have to worry about lender sending 1099 for forgiven debt and deficiency judgment. 1099 should be covered by 2007 law, but check with CPA. Deficiency judgment you will want negotiated away or could force you into bankruptcy. Check with an attorney.
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For Sale: $138,900
For Sale: $184,900
For Sale: $1,350