Making My Payment Or Default?

We are in the process of deciding whether to short sale our home. My husband and I received our short sale package and if we want to proceed we need to submit the package to the bank by 1/5/11. We are two payments behind. My house is already on the market and my broker is advising me not to make my next payment and let it go into default. I don't know what to do. The papers stated that my short sale will expire 4/26/2011. During this time can they still proceed with a foreclosure? The fact is we are 100,000 upside down, my payment is pretty high including pool expenses and the house is over 50 years old. The comps in my area have decreased dramatically due to foreclosures in my area. We can afford to stay, but the cost to maintain an older home are knocking on our door. Our goal is to buy again, I'm not sure if we should stay and pay off our car loans etc. and try to buy another house while residing in this one, or just proceed with a short sale. My home is licensed as a daycare by the state, so I guess my biggest fear is finding a home owner that will allow me to rent his/her property so I can run my business. Without my business we wouldn't be able to buy again... :roll: