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The only way to truly leave your credit intact is to come up with the difference (20k) when selling the home. If this is not an option, then a short sale is the better bet. Your credit will be affected, but not impacted as harshly as a full blown foreclosure.Try to take all steps to avoid foreclosure if possible.However, there are tax and legal consequences to a sale, foreclosure or short sale. You should speak to a tax and legal professional before moving forward. They can assess your particular situation and help you weigh all your options.Good Luck!
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For Sale: $104,500
For Sale: $90,000
For Sale: $189,500