Thank you for your question, and thanks for using JustAnswer.com. If you are trying to choose between a foreclosure and a short sale, the short sale will be your better bet, and here's why.
With a short sale, you can keep current on your payments and be in control of the sale of your home. While your credit score will take a hit very similar to what it would for a foreclosure, you will be eligible to purchase a new home immediately, although finding a lender would be difficult if not impossible. With a foreclosure, you cannot purchase another property (with a loan) for 5 to 7 years. The credit score hit for a short sale is 50 to 130 points. For a foreclosure it's 105 to 160 points.
The negative information will stay on your credit report for 7 years in the event of a foreclosure. With a short sale, you do have a negative record but it's not as glaringly obvious. Many lenders will report these "paid less than agreed" or something similar.
If you can do it, a short sale will be your best bet. There is a very detailed synopsis of the difference between a short sale and a foreclosure, HERE
Please let me know if you need anything additional. Thanks again for using JustAnswer.com and have a happy, and safe, 2013.
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