We want to go forward with a Short Sale on our house but we will have about $60,000 short from what we owe on it. I am not sure if it would be better for us to go into foreclosure or to go forward with a Short sale. The problem is that we can't afford to pay a lot in taxes at the end of the year if we get a 1099 from the bank. We need some good advice regarding what we should or should not do.