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Should I sell via short sale or let it go to foreclosure?

2nd home, no chance for tax relief on the short sale. $117,000 loss to the bank. If I do a short sale now I'll owe $25k in taxes this year. If I let it go to foreclosure I can put that off until next by the time everything is done. What would you do?

Public Comments

1. I would take the short sale, work out a payment plan with the bank and advoid the major hit to the credit rateing.
2. Dude,i would try everything in my power to keep the home for now if possible...rent it out even if it means having to throw in a few bucks monthly.The market will flourish again,and then you can sell.
3. Just because it is a second home does not guarantee you'll be issued a 1099. That rarely happens. Do the short sale and make a payment agreement on the tax bill *if* they issue a 1099. No 1099, no tax issue. Do the short sale and it will be far better for your credit. If they foreclose, you could have a $117,000 deficiency judgement owed to the lender. The short sale is far better, tax or no tax. Good luck.