Short sale will you be able to get another mortage in a year?

The real estate agent is full of sh*t and just wants his/her commision.

HiI can't imagine how it would NOT hurt your credit as you would be settling a debt for less than originally agreed, essentially requiring your present lender to take a loss. You can see that from a lender's perspective, that is hardly trivial.Under present rules, FannieMae and FreddieMac treat this as a "preforeclosure" regardless of your payment history and would require you to wait 2-7 years, depending upon your down payment. Lenders may - and often do - have stricter requirements of their own. For FHA loans (not VA or USDA) it would be 3 years, unless you meet the conditions that fstadler posted below.Since your real estate agent appears to also be licensed to provide mortgage advice, you may ask him or her for specifics. They may know of private lenders in your area able to do what you want. Just be aware that you could wait the year, have a favorable credit rating and, in the meantime, rules may have changed that could affect your eligibility. It happens a lot. Tom