You need to talk to an expert in your area that can answer your questions. First of all, you need to contact your bank and ask them for their policy/process for short sales and then contact a Realtor regarding it. In most cases and in most states you will need to qualify for a new home prior to selling yours as a short sale because once you have late payments on your record it would be very hard to qualify for a new one. There are several banks, mortgage lenders and REALTORS you can speak to about your situation, you do not have to hire them or follow their advice - however, it is the best way to determine your best course of action and your options.
Response #1 is only half correct. You MIGHT be able to do what you are talking about. First, in order to buyer again you'd need to qualify for a new loan (unless you paid cash). Most lenders will not lend to you if you have late payments from the last 12 months on your credit record. Typically (but not always) a short sale involves late payments on the mortgage you are short selling. Most lenders will not allow you to short sell unless you can demonstrate a hardship. One of the indications of a hardship is the inability to make the payments. Therefore, most banks essentially force you to be late in order to demonstrate hardship (among other types of hardship proof as well). However, there are some banks with some types of loans that will allow you to short sell without ever having a late payment. Doing this typically requires that you do have some significant or impending hardship. If you can get your current lender to allow you to short sell without being forced to be late then there are indeed some banks that will lend to you again IMMEDIATELY after a short sale.
I can find out quite easily if your current bank and your loan type will consider allowing you to do this. Simply contact me at your leisure this upcoming week. I'll go over it all with you. There's no charge and I promise you'll get sound advice without any sales talk. I live in Martinez and specialize in short sales.
Neil Case 925-382-7294