If you have already missed payments, whether they are mortgage payments, car payment, credit card payments, or anything that reports to the credit bureaus, your credit will already be damaged. A Short Sale will not “help,” your credit. It does prevent your credit from being damaged further. By most accounts, a Short Sale is much preferable on your credit report than a Foreclosure. So you are choosing the lesser of two negative reports. When you go to get a loan in the future, we have been told that lenders will look more favorably on Short Sales because you were proactive and cooperative rather than ignoring the situation.