First of all, I think your best first step would be to discuss this with a lawyer who specializes in short sales, along with your bank to see if you would be eligible for a short sale on the home. Your agent should know an appropriate lawyer if he/she specializes in short sales because those of us who do work with them often.
Regarding your credit, it is hard to say exactly how it will affect your credit rating because it is an individual thing, but my mortgage advisor has been telling people that it will be about 2 years after a short sale before they will qualify for another mortgage.
If you have no deed you have no proof of ownership. The value is one thing as-is, and another subdivided. It can take many thousands of dollars and months or years to get a subdivision approved. There is a lot of work and there can be a lot of risk involved.... more
It's a short sale ONLY if you already have your lender's approval to do a short sale. Otherwise, you will have to bring money to the closing table - enough to cover your mortgage and all your closing costs. Don't just assume you can do a short sale - there are specific requirements, including demonstrating hardship. If you are in a hardship situation, I recommend connecting with a Realtor who has short sale expertise, and talking with your lender.... more
You can call some of the Real Estate Offices in your area and ask specifically for agents who are dealing and selling mainly with short sales. I am currently involved in a number of them but you are too far from me. Short sales is a game of patience. The agent that you need will be someone who will communicate with you every step of the way.