Comment posted Short Sale Vs. Foreclosure? by Alterfem.

Pretty much. And are you aware that the lender can file a 1099 form with the IRS showing you received the difference in the sale price and mortgage balance of taxable debt-forgiveness income?

Alterfem also commented

• It will be much better than a short sale on your credit. There may be some remaining money problems because of how the shortage will be treated by the mortgage company, but the shortage would be much more dramatic and treated just as bad or worse in the case of a foreclosure.