The question is why sellers apply for short sale?. Many homeowners lost their job or need to move to different location and they can't sell their home because the amount owe to the bank is greater then the best price they can get for their home in today market. Therefore, they have no other option only to apply for a short sale so they can move on . It is a lot better and less painful then foreclosure .In some cases the owner can rent the home for couple years until the market improve as long as the rent collected cover all expenses or near .Anyhow, Consulting a professional Real Estate ,Accounted or Attorney is also a good way to go.

A short sale is better than simply walking away from the property. The damage or blemish a short sale would put on the sellers credit as a deficiency would be far less damaging than a foreclosure. We are talking about a credit repair difference of 4 or more years between the two. On a short sale, you have much less damage, on the average approximately two or three years of rebuild. On a foreclosure you are facing 7+years of repair. Overall, the seller should discuss their options with all their advisors before making that ultimate decision like their financial advisor, accountant, lawyer, lender and realtors. Then ultimately make the best decision based upon market conditions, financial situation and needs to move. They can always rent for a couple years to rebuild their credit. That's my take from my experience since 2005 on this subject.

I agree that it is not the best alternative for a seller to consider this if they are not behind already. If a client needs to move fast and Needs is the improtant word here. The short sale will move the property due to the lowerer cost of obtaining a good home for the buyer looking for a deal. It will get an owner into contract with a buyer if the price is right. and I believe this is an alternative to selling a home for someone who Needs to move quickly.
The owner can still pay the difference and not have any bad credit. I believe this is the thought pattern NAR is assuming with this line of question.
Real world situation I dont think so.
Nunzio