One of the requirements for a short sale to be considered is that the homeowner be unable to meet their loan commitment in any way. This will need to be demonstrated with bank statements, credit card debt information and a profit and loss statement if you have a business. Another requirement is that you have no other assets and a second home would indeed be an asset thus making the ability to short sell your first home difficult if not impossible.
If you have the funds available to purchase an additional home then, it would not be unreasonable for the lender to assume that you should be able to fulfill your commitment to repay the loan you promised to repay when you asked for it.
So, that being said, I don't see how you would be able to purchase another home and short sell the home you currently own without running the risk of getting into big touble.
Have you spoken with your lender to see if there are any options that they can offer you that might help to make your situation better? Have you spoken with a Realtor to see what the value of the home you currently have is right now? If you have not done either, I would highly recommend that you do one or both.
A short sale can remain on your credit for upwards of three years> But, for most people, especially if they are making an effort to fulfill their other credit commitments, the negative effects can begin to be reversed in as little as a year.
If you would like a CMA of your home, or to discuss other options that might be able to help you, feel free to give me a call.
Tisza Major-Posner, Realtor, Keller Williams (909) 837-8922