Keep disputing, might get you a few bucks, but it seems that smoke damage could be cleared in one month.

By the way I am not concluding anything about you , because I don't know enough about you.I am also definitely not encouraging the OP to litigate and enter in to disputes , but merely stating that , we need more information to come to a conclusion . 

The only true way of finding out what will result is to talk and negotiate with all Lenders involved.As for what makes a Short Sale a "better" resolution than a foreclosure, read thru this site.

Write a Resolution, sign/seal it, an put it in your corporate books/binder.

Most of the time you can prove this by your own testimony; however, in the event of a dispute it helps to have evidence.

In addition they will keep records of complaints, litigation filed and any other filed disputes. 

You can use a form and try and draft for all the contingencies yourself, but don't be surprised if there is a contract dispute later.  

They tell me I have to dispute the dispute to get my money back, a bit of a hassle but I can deal with that.  

I am fortunate to have had good financial training early, and I won't dispute that it helps a lot to have money to make money.  

They're working on a resolution.