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system
short-sell, or try to rent out?
user
a short sale will be pretty bad for your credit report. it will linger for 7 years.  this may ruin your opportunity to buy in the new area. on the other hand you need to run the numbers, the last i looked into this, the bank will look at rent and discount it by 25%. so the shortfall of $800/mo (after adjustment) will reduce your borrowing power if you rent it out.  in general this is the idea. you rent for a year, and buy into the new area. if you short sell after this, while your credit is trashed, you still have your new home, and $50k less debt.  (disclaimer - there are those who question the ethics of this, a willing short sale. i am offering a purely business answer and making no judgment either way. i owed $90k on a condo where others were selling for $20k. i paid until it came up enough that a lump sum got me out upon sale. the bank got its money in full)  an article on the differences between foreclosure and short sale.
assistant