My wife and me are considering a short sale as a means of selling our home.We have had this home on the market for about 7-9 month with no real activity. So my questions are 1) I know its bad to do credit wise but how long will it effect a credit score and considering the current market in the northwest how badly would future credtitors and lenders look upon this for future housing loan needs? 2) Our house is only in my wife's name so would my good credit score be affected by the short sale or would I still be able to make financial moves for my family i.e... new loan for smaller house,cars,etc.. 3) How badly would the IRS be able to tax us on the forgiven loan amount. 4) What is the average short sale going for say we owe $316,000 what would the likely short sale offer be ball park if possible? Any knowlegable information would be greatly help thank you

The shortsale will have some effect on your credit, but no a huge one. The amount of loan balance that is forgiven will be listed as taxable income to you increasing your tax liability.