It isn't so much your consumer credit that matters with a foreclosure, it is the fact that you can be put on a mortgage blacklist under a federal program called CAIVRS if you have a federally backed loan. See more info at the link below. A short sale will always make it easier for you to obtain mortgage financing in the future even if the foreclosure itself doesn't appear on your consumer credit report as a result of your bankruptcy. Hope this perspective helps!
Definitely a short sale is preferable to a foreclosure for many of the reasons that Ms. Bunce noted.
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