Loan modifications vs short sales
Short sales are often confused with loan modifications, but they are really two different things entirely.
A short sale is not too glamorous. You damage your credit similarly to the way you would with a bankruptcy. People take their credit for granted until they need a good credit score to acquire a loan or at least a decent intereste rate on a loan.
You have to deal with the selling process. Have you ever tried to sell a home? It sucks! Especially in a bad real estate market.
There are also several different restrictions on when you can own a home again after a short sale.
In the end, loan modifications are almost always the best way to go whenver you face a personal economic crisis and you can no longer afford monthly mortgage payments. If a loan modification is ever at least an option to your personal situation, definitely try to at least think about it.