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Short Sale vs. Foreclosure: Who Wins?

By Shelda Hodges Author & Realtor

Real Estate Agent with SANDALS REALTY GROUP, INC

October 01, 2012 11:44 AM

One of the most frequent questions we’re asked is if a short sale has the same effect on a consumer’s future credit as a foreclosure. The answer is…ABSOLUTELY NOT!

When it comes to credit reporting, a short sale will most likely have a much less catastrophic effect than a foreclosure. As of right now, short sales are not listed as “short sale” on your credit report, but as paid as agreed, paid as negotiated, or paid for less than the original amount.

Also, If you are considered current with a short sale, you still have the ability to apply for an FHA loan, while having a foreclosure on your credit report stays there for a mandated 7 years. Not to mention, with a foreclosure, you must go through months of delinquency notices and in many cases a court appearance, which is also reported on your credit report

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June Piper-Brandon

Coldwell Banker Realty - Columbia, MD

Creating Generational Wealth Through Homeownership

We are seeing more and more short sales in Maryland. Again today I heard about a company that took money from a homeowner under the guise of a loan modification but none of the money made it's way to the mortgage company. There needs to be more education of the general public.

Oct 01, 2012 01:00 PM

Faria Nick

Fireclosure Attacker - Summerville, IL

I was really worried on how to save your house safe from tentacles of creditors, but foreclosure attacker proved to be a blessing in disguise. Through it I was not only able to keep my home intact, my payments was also waived. I recommend it because it is the best way to save your house.

Thanks

Keep my home Team

Dec 31, 2012 07:19 PM

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Shelda Hodges Author & Realtor

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