Did you know that:

Foreclosure: Foreclosure is the most challenging issue against a security clearance outside a serious misdemeanor or felony conviction. If a client has a foreclosure and is a police officer, in the military, in the CIA, security, or any other position that requires a security clearance, in almost all cases clearance will be revoked and position will be terminated.

Short sale: On its own, a short sale does not challenge most security clearances. 

Foreclosure: On any future application, a prospective borrower will have to answer YES to question C in SectionVIII of the standard 1003 form that asks "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" This will affect future rates.

Short sale: There is no similar declaration or question regarding a short sale.

Foreclosure: Score may be lowered anywhere from 250 to more than 300 points. Typically will affect a credit score for over 3 years.

Short sale: Only late payments on mortgage will show, and after sale, mortgage is normally reported as ‘paid as agreed', ‘paid as negotiated', or ‘settled'. This can lower the score as little as 50 points if all other payments are being made. A short sale's effect can be as brief as 12 to 18 months.

Foreclosure: Foreclosure will remain as a public record permanently, and on a person's credit history for 10 years or more.

Short sale: A short sale is not reported on a credit report. There is no specific reporting item history for ‘short sale'. The loan is typically reported ‘paid in full, settled'.

For more information, please visit: http://www.PeaceofMindinParadise.com

Patrick Casey, CDPE, Certified Distressed Property Expert