A short sale affects your credit about 50 points VS a foreclosure affects it by 200 points.
I would highly recommend you contact an attorney who specializes in this area. there is a website you can look up attorneys to see if they meet the criteria .
If you have any questions, please feel free to contact me at 203-682-4327
Betty @ William Raveis Real Estate email: firstname.lastname@example.org
However both short sales and foreclosure affect your credit. A deed in lieu affects it just like a foreclosure. Short sales are less harmful to credit and the two years instituted by Fannie Mae is much shorter than what the foreclosure would do. According to Fannie Mae if you had no late payments and then a short sale, you could qualify for a new purchase right away. I recently wrote about this: http://javanaim.topproducerwebsite.com/blog/?p=15
A realtor cannot help you with a deed in lie, a foreclosure or a loan mod. A well informed one can help you decide but a realtor can only help you with a short sale.
1. Loan modification
2. Short sale
3. Deed en lieu
Then discuss with a CPA regarding tax implications of each.
In most cases to qualify for a short sale your credit will be in a world of hurt. The latest guidelines from Fannie Mae are a two year wait to purchase a new home.
The Seymour Law Firm, who specializes in this. There phone is 203-924-6700. More info is needed.