You do qualify, if you are a primary homeowner, and please remember this is ending on December 31, 2012. However, I suggest to see a licensed attorney in this regard. A short sale can become complex, if there is more than one lien holder attached to the property. Also, the attorney may analyze your situation to see if you are qualified to file bankruptcy to get rid of other unsecured debts.
Only see a licensed attorney before you make any decision. This answer may not be perfect in any given situation