Going late on your mortgage payment is damaging to your credit score, but successfully short selling your home is much less harmful than a foreclosure or bankruptcies. A short sale might make it so you cannot get a new mortgage for 2-3 years, where a foreclosure or filing bankruptcy could keep you out of the market for as many as 7-10 years.
By working with the bank who originally gave you a loan, and selling your property should, they avoid the costly foreclosure and eviction process. A landlord renting you a property or a new mortgage lender will look at this as a positive in comparison to a foreclosure and be more likely to give you a loan or rent you a property in the future.
Also, if you sold your house short, it means the housing market is probably in a downward trend, by avoiding foreclosure you’ll be in a position to buy another home in several years.