Taos: How is seller's credit affected by a short sale?
Sellers will take as big a hit on ther credit by going through foreclosure , giving the lender a deed in lieu of foreclosure or doing a short sale.
Both short sale and foreclosure affect your FICO score up to 200 to 300 points.
One difference will be that if a seller wants to buy another home after foreclosure, the lender will wait up to 36 months before any kind of interest rate that makes sense will be available. In a short sale, the time frame is cut to 24 months.