Totally a biased short side opinion...

Are Short Sales Shorting the Real Estate Market?

The author has not mentioned the most important distinction between a short sale and a fore-closure. Either he is as ignorant about it like the rest of realtor's I come across or too afraid to speak it out...

Here:

Short sales result in a big Tax-bill for the seller as the difference between amount owed and sale amount is considered as an income to the seller by IRS. I believe there is a bill in the work to forgive the same but am not sure if that has been passed.

www.thinkglink.com/Sho...

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So in short, short sale is nothing but a gimmick employed by Sellers to price the property so low that the Lender rejects it. And it can then go into foreclosure. That way, the seller avoids the tax bill. Credit score is impacted the same in Foreclosure and Short sales...

homebuying.about.com/o...

so why incur the big Tax bill...

One could argue that why would the seller take all the trouble to try and short-sale and not just walk away if his intentions are to fore-close..., this is something I am still looking an answer for...

BTW, what I am saying about is from an article on about.com but cannot find the link to it...

-j