Pat if you do not have a real estate agent working with you through the short sale you should really seek legal assistance to get you through the process. Short sales can be very time consuming and in the state of Michigan you have 6 months after the sheriff sale to get the home sold and closed. So you'll need to make sure it is pushed along.
As for the foreclosure it is not a foreclosure until after the redemption is over and that is 6 months. That is one reason many people choose to do a short sale because although your credit is effected it is not a foreclosure.
As I said above you really should not be signing without assistance from a professional. - Sun Oct 18 2009, 19:41