Foreclosure will likely impact you for a minimum of 7 years.  You will be required to disclose that you have been Foreclosed upon when completing the application for future mortgage(s); and it will reflect in both eligibility and interest rate.

A Foreclosure on your credit report will have a significant impact on your credit score that will likely take numerous years to recover from.

A Foreclosure remains a public record and can impact your credit report for 7 years and in some cases as many as 10 years.

Many potential employers conduct and/or require security background checks.  A Foreclosure on record could result in a revoke or denial; which could (in turn) impact your status.

Employers have the right to conduct credit checks with their employees.  Should an employer have a sensitive situation, they may be forced to reassign or terminate.

Required credit checks are common practice of potential employers.  A Foreclosure on an applicant's record could prove detrimental in their consideration process.

The lender may be permitted to seek a deficiency judgment against you - depending on the character of the loan that is Foreclosed upon.

When there is a Foreclosure, by law, the lenders are required to file a Form 1099A. Under these circumstances
you ''may' have to report as income for tax filing purposes. 

It's always recommended that you consult your tax specialist to fully understand the tax implications associated with Foreclosure.
Specific Issue

How Will I Be Affected
When Applying For
Future Loans?

How Will My Credit Score
Be Affected?

How Will It Affect
My Credit History?

Can Employment 
Background Checks 
(Security Clearance)
Be Affected?

How Can This Affect My Current Employment?

How Can This Affect
Future Employment?

Deficiency Judgment

How Will This
Affect Taxes?

A Successful Short Sale means that you avoided Foreclosure.  Therefore, your credit should not be affected.  In turn, you will never need to worry about disclosure.

Remember:  A Short Sale is the lesser of the two evils.  Your credit score will be reduced depending on how it is reported by the lender (which may be a negotiable item). On the up side, you will likely require less time to pass to recover from the impacted score; and you will be able to re-enter the purchase market in 1 to 2 years (depending on individual circumstances).

The Lender will typically report as "Paid in Full", "Paid Settled", or "Paid For Less Than Agreed". The actual words "Short Sale" do not appear on your credit report.

A Short Sale should have less of an impact on security clearance.

A Short Sale should not have affect on current employment.

A Short Sale should not have affect on future employment.

A Short Sale can include negotiations with your lender to fully discharge the loan at the time of sale.

In the Short Sale scenario, lenders are required by law to file Form 1099C; which you 'may' have to report as income for tax filing purposes.

It's always recommended that you consult your tax specialist to fully understand the tax implications associated with Short Sale.