Is short sale really better than foreclosure?I heard that in two years they have equal effect on credit. Also, with short sale, the bank's loss becomes your tax event. However with foreclosure of a very under water property the bank necessarily buys it from itself at the auction at full price, so there is no short fall and no 1099 of "income."January 30 2011 - Point Reyes Station11YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.