Foreclosure alternatives - short sale and deed in lieu

The Calculated Risk blog is a great source of info on real estate market conditions and finance topics. Check it out if you haven't already done so.

A recent post covers the growing popularity of short sales and an alternative path out from under a mortgage: the deed in lieu of foreclosure. A "deed in lieu" is exactly what it sounds like. The mortgage lender voluntarily accepts a deed for the property from the owner without having to go through the foreclosure process.

Will a short sale or deed in lieu result in less of a hit to your credit score? Nope, says a source quoted in the post.