Michael provides some good information in his post.
I wanted to make sure we are all clear that the way lenders/banks/credit reporting agencies change their requirements and guidlines on a very regular basis. Today they are for something, then tomorrow against it, then for and then against and so on when in comes to loans. I believe (opinion) that banks will loosen requirements and I'm sure they will also look at short sales and foreclosures in a different light in the future. That "for now" they may look at a short sale and foreclosure the same way, but later that will likely change. Banks/investors are in the business of making money and if nobody can borrow money, interest on that money can't be collected. They want to loan and as confidence builds in the market, so too will loans be more available.
I would like to repeat what others have said: Talk to a few Realtors (this is a good start), attorneys and CPAs. The more information you have the better you will be able to make a decision.
Unfortunately nobody knows the future and the ramifications of todays' decision may better or worsen over time. We can only do our best with what we have.
Keep your head up!