I've recently been thinking about what the true advantages of a short sale are as compared to just letting a home go into foreclosure.  In both cases the seller is delinquent and is having problems with the current mortgage.  If a lender is not going to forgive a deficiency and could come back at a future date to collect the unpaid balance why wouldn't someone just let the home go to foreclosure? Yes, your credit is going to take a hit, but you can wash your hands from future claims by the lender.  I have even heard that the credit reporting agencies are looking to eventually treat a short sale the same as a foreclosure.

I know you get stuck in a moral dilemma, but what is one suppose to do?

What are your thoughts on this subject?