Your agent will be able to provide you with the most accurate information on this topic. BUT put yourself n the shoes of the MR. BUYER, would you appreciate being suprised by finding out you were dealing with a "short sale?"
Frankly, you want to disclose the short sale. A buyer who finds out about it later, might lose interest because of the time frame and uncertainty often involved. There are other buyers who are actively looking for short sales, and they would not find your house if you did not include that on the listing.
Good luck with your sale.
This information is available to the public from Realcomp about third party approval. (short sales, relocation, etc) http://www.realcomp.com/Support/upgrades
I would agree with Derek that most lenders do not agree to a short sale until after there has been at least one offer on the property. This may or may not hold up your approval, depends on the lender.
Just a suggestion, the State of Michigan offers assistance through http://michigan.gov/MSHDA houseing counselors. Perhaps you've seen their commercials offering assistance. They may be able to help you "grease the wheels" with your lender.
Yes, the MLS that your house will be entered in (Realcomp) does require the property state that it is a short sale.
Just so you are aware, most often the permission and approval to do a short sale often occur after the home has been marketed and an offer presented. I would encourage you to speak with your Realtor (if you do not have one, I request the opportunity for an interview), and likely get the house marketed ASAP. I am putting a couple short shale properties on the market this coming week.
Please visit us online at http://www.DoorToDreams.com, and you can always phone me at 734.678.4745.
Enjoy the sunshine!
Derek Bauer, Associate Broker / Realtor
Real Estate One