Normally short sales is reported as "settled" or "paid in full".
settled: means that you have an agreement to pay back only a portion of that total amount.
paid in full: means that you satisfied your debt.
Keep your mortgage payments in good standing, and
Make sure to keep record of that final letter that you agreed with your lender where they stipulated how they are going to reported your short sale to the different credit bureaus.
Best of Luck,
Maria E. Cipollone
"While a short sale will still have a negative effect on your credit, it generally takes less time than a foreclosure, so your reported delinquency could be shorter. As a result, your credit may improve faster. If a short sale is completed on your property, we will report that your loan was â€œpaid in full for less than the full balance."
If you stay current you can buy immediately with an FHA loan as long as you are not considered taking advantage of declining market. You must wait 3 years after a short sale for a conventional loan. Hope this helps.
Realty Executives Silicon Valley