Were Foreclosure By Any Other Name Smell As Bad

What if everybody stopped paying their mortgage? Well, okay... that might be a bit scary. Let me revisit that thought in a different way. What if over the next course of 5 years, 33% of all people had a foreclosure on their credit report. Would it have the same impact on your credit? That would mean 1 in 3 people would not be approved for a loan for a home. I am beginning to think that there may be a brief point in history when a foreclosure on your credit report may just be dismissed? Or if you were able to show proof of a reason why you defaulted, you may still meet the requirements? I have read and heard that a short sale hurts your credit almost as bad as a foreclosure. Maybe in 5 years a short sale will be forgiven, but a foreclosure will continue to be taboo. Hmm... what do you think?