A short sale it is supposed to be listed as a “settled debt” on your credit report and will remain on it for about 7 years. Such a sale can reduce your credit score by roughly 200 points. Typically, a lender won't issue a mortgage until at least 2 years after an applicant's short sale. Additionally, a lender can ask for a "deficiency judgement", since a short sale will  result in the remaining mortgage balance not be fully paid off. So when obtaining a lender's permission for this type of sale, also make sure that they will waive their rights to a deficiency.