Dwayne:

Short Sales and Foreclosures are treated differently.  For one, new guidelines with Fannie Mae require a person to wait two years before buying a new home, three (not sure) for a foreclosure.  On credit reports, the way a short sale is reported by the lender makes a difference.  Some will mark it as "paid in full" or "paid as agreed for a lessor amount."  Additionally, the foreclosure will show up and stay on your credit report for a long time, adversely affecting your credit score for a number of years.  The short sale shouldn't appear on your credit report other than the "paid as agreed" comment from the lender.  Short sale is definitely better and recommended.