Hello Barbara Fleming!

I am sorry to hear about your situation, but your case is better than most.

Basically, your credit rating is "rated" by current payments and late payments...if you have no late payments that you are good to go. The fact that you have a short sale will not effect your credit other than if the person who is negotiating the short sale is not able to get the bank to report paid as agreed. But, if you move out before the short sale is posted to your credit you are good. Even if the bank does report you paid less than agreed it is nothing close to what would happen if you went through with the Foreclosure.

Here is direct access to the Fannie Mae guidelines...which all lenders follow. They just came out with new guidelines in 2008...which states that you will need a 2 year re-establish time if your loan was posted on your credit paid less than agreed. See the Proof in the link below directly from Fannie Mae.

You can also get more information about short sales from my website...I do not cover your area but my site covers all short sales for PA.

I hope this information helps you.

As long as the guidelines don't change 2-3 years vs. 5-7 if you foreclose.