I've recently been thinking about what the true advantages of a short sale are as compared to just letting a home go into foreclosure. In both cases the seller is delinquent and is having problems with the current mortgage. If a lender is not going to forgive a deficiency and could come back at a future date to collect the unpaid balance why wouldn't someone just let the home go to foreclosure? Yes, your credit is going to take a hit, but you can wash your hands from future claims by the lender. I have even heard that the credit reporting agencies are looking to eventually treat a short sale the same as a foreclosure.
I know you get stuck in a moral dilemma, but what is one suppose to do?
What are your thoughts on this subject?
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