Some banks will consider relocation and the decline of home values as a reason for the short sale and look favorably 18 months to 2 years and consider lending. Your best bet is to start shopping for a lender and see if you can find someone to work with. I am not saying it will be easy but you might find one who will work with you. My advice is maybe use a mortgage broker and not a traditional big bank lender and on that note as well may a smaller local credit union. Also, not sure what your financial situation is but you may consider as well using a 401 K or private lender to temporarily finance your home. It may be at a higher interest rate but its an option. For example, if you can borrow what you need at 10% for the next four years or so till you are out of the woods for the short sale dinging you, you could refi your home at that point and roll the dice with the interest rate at that time. Pricey yes but may be an option if home ownership is that important. Otherwise, find an excellent rental and stick it out for a few years. Example do the math: 4 years 48 payments rent @ 2000 a month leaves you at 96000$ spent with 0 sum game. Borrowing private money at 10% but putting equity in the matrix rather than just renting... might not seem so bad.