Without a doubt sellers will incur more damage on their credit report by going through a foreclosure.  Typically your credit score will take a plunge between 200 to 300 points.

Short sales have a far less damaging affect on a seller’s credit report.  Credit scores typically lose between 80 to 100 points.  What happens to your credit down the road?  It takes around three years after a foreclosure before a lender will offer a sensible interest rate, whereas a person who went through a short sale typically waits around 18 months to buy another home at a good interest rate.