In the debate whether it would be better to let a home foreclose or attempt a short sale, the main things most people are comparing are: the hit to the credit, amount of time it will take to be able to buy another home and if there is any debt left for the homeowner.
I wonder if most people think of the effect a foreclosure vs. short sale will have on their job? I have learned that there are employers who check credit and will not hire someone with a foreclosure on record. Some employers check credit throughout employment and will terminate an employee if a foreclosure appears on record. Those with a security clearance (military, police officers, some government workers, etc…) have to be careful about this. They are likely to lose their security clearances (and their jobs) for a foreclosed home.
As always, it is crucial for anyone facing this decision to consult an attorney who specializes in giving this type of advice. There is so much at stake!