Why Are Short Sales So Bad For Your Credit?

[...] A severe drop of 160 points or so in your credit score isn’t so surprising in the case of a foreclosure.  However, some may not realize that a short sale or mortgage modification can have a similar impact.  Some even argue that FICO scoring is too hard on consumers who “do the right thing” by working with their lender toward a short sale or mortgage modification, versus simply walking away from their obligations (aka strategically defaulting).