A few benefits of a short sale:
1) Typically all fees ie. commissions, escrow, title, etc. are paid by the bank
2) Mortgage debt relief
3) A short sale most likely will affect your credit less negatively than a foreclosure
4) Most banks will pay property taxes that are in arrear
5) After a short sale, a home can be purchased in as little as 2-3 years
6) Some government programs and banks are offering cash incentives for home owners who conduct a short sale
For home owners who have exhaused the loan modification route and have a valid hardship, a short sale can be an attractive option.