Many people want to know the Tax Ramifications on a Short Sale.  Know the difference between Recourse vs. Non-Recourse Loans.  Make sure to speak to a Real Estate Tax Accountant or a Real Estate Attorney about your situation with regards to Taxes on a Short Sale.  NOT all Accountants understand the tax issues with regards to Short Sales.  You need to make sure you are speaking with someone who is up on the new laws, bills and what is going on with Short Sales. Know that with a Foreclosure there are also Tax Ramifications that maybe more harsh than a Short Sale.  MAKE SURE TO SPEAK TO AN EXPERT!