The number one reason why we advocate pursuing a short sale vs. a foreclosure, is that a foreclosure will prevent you from obtaining a mortgage for a minimum of five to seven years, in addition to extensive damage to your credit, whereas a short sale will have far less damage to your credit in that most borrowers will be able to obtain a mortgage after two years of conducting a short sale. Also, the deficiency is waived and if it is your primary residence-there will be no tax consequence for the waived deficiency! In the event of foreclosure, the deficiency is collectable, and will be significantly higher than in a short sale (since properties sell at extremely discounted prices at foreclosure auctions).
You, the seller, is in control of the offer you sign and the timing of the sale, much like in a traditional sale. There is no embarrassing foreclosure sign on your front yard. It is much more private an event and to the general public just another sale.