I always recommend that my clients save their money, if you are going to rent you will need first and last and some rentals require additional security deposit money depending on your credit and ability to pay rent.
You should be able to purchase again in years, make sure you repair your credit. That doesn't mean canceling all your credit cards, it means paying them. As long as there are no other derogatory things on your credit you should be fine.Talk to a lender now, or as soon as the short sale has been completed so that you have a better idea of what you can expect.
The bank can foreclose, your agent needs to make sure that the sale date is postponed as you are working with the process. There also is a new law which doesn't allow the bank to foreclose if they are working with you on a short sale or a modification that most banks follow even though it doesn't go into effect until next year. But again make sure your agent or you follow the sale date.... more