Hopefully, you’ll never have to go through either one. But when faced with two bad choices, it would be wise to choose the lesser of two evils. To bluntly share my opinion, foreclosure should be avoided at all costs as it will prevent you from qualifying for another loan for at least 7 years in most cases. There are other options; and the most common last ditch effort to prevent foreclosure is a short sale. When all else fail like Loan Modification, Forbearance, Deed-in-lieu, et.al., you need to act fast and hire a knowledgeable Agent to walk you through the perils of a short-sale work out. TIME IS OF THE ESSENCE in a short sale!
A short sale is negotiating with your lender to release the lien on your property to allow you to sell your home for less than what you owe your lender. While outcomes vary with each situation, a successful short sale yields similar benefits to the borrower: First, you would qualify for another mortgage again in as little as 2 years. Second, you will do less damage to your credit score since creditors regard short sale as “settled for less than amount owed”. Third, your credit would still be good enough to pass credit screening for an apartment provided you have kept up on your other bills.
So, which is which, Short sale or Foreclosure?
"Your Resource For Saving Thousand$ When Buying Or Selling." Carlo Delizo - Residential & Commercial Cell: (425) 444-1010 E-mail: realestate@carlodelizo.com RE/MAX Mutual Realty
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