I am in the process of trying to do a short sale and have a offer pending bank approval what is the options if it is not approved and is a short sale terrible on a credit report

There is no options if the short sale is not approved,

You can ask them to do a deed in lieu of foreclosure. But if they don't do that, you just wait for them to take you to court for a foreclousure.

A short sale is better than any other option past that point.