Short Sale Process vs. Foreclosure

Here is a list comparing the short sale process vs. foreclosure. Hopefully this list can help you determine what is the best course of action for your particular situation:

Credit Effect

A short sale affects credit negatively, but not in the sense most think. A short sale transaction is damaging to credit mostly due to late payments made on the mortgage, and some who are in a short sale choose to start ignoring other bills and payments that get reported to the credit bureaus, like sewer and trash, water bills and HOA bills.

A foreclosure reported on a credit report is a huge red flag for future lenders of credit. It says “I just walked away”, and that type of attitude does not bode well with givers of credit. And a foreclosure on a report can keep you from buying a home for years, although that can vary from lender to lender and as credit is tightened and loosened in the industry.

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Todd & Devona Garrigus

Coldwell Banker Kivett-Teeters

Dre #’s: 01844441/08144442