Foreclosure Vs. Short Sale ~ What happens to your credit in San Antonio, Texas?

Homeowners looking to stop foreclosurehave opportunities. One of these opportunities is a short sale. One of the primary reasons to explore a short sale is to save your credit. In most cases if this is possible, it is something one certainly should pursue. Let's look at the facts:`

Credit History-

Foreclosure: Stays on your credit report for 10 years or more & remains a part of public record forever.

Short Sale: Is NOT reported on your credit history. There actually isn't a specific reporting item for 'short sale'. The loan is typically reported 'paid in full, settled'. Your may or may not see the late payments on your report though but you won't see "short sale"

Credit Score-

Foreclosure: A credit score can be lowered 250 to 300 points in the event of a foreclosure. You can expect your score to be affected for over 3 years.

Short Sale: If a short sale is successfully orchestrated on your home only late payments on your mortgage will show (as it is now). After the sale the mortgage will be recorded on your credit score as "paid or negotiated". You can expect your score to be lowered by 50 points. A short sale's affect can be as brief as 12 to 18 months. (Information from www.cdpenow.com)

Choosing to get a Realtor involved and letting them assist you sell your home in a short sale vs. letting it go into foreclosure can save you points on your credit report & years of bad credit. 

The short sale process can be frustrating, long, invasive & downright time consuming but it is doable.  A little bit of leg work can save you years of frustration down the road if you go to purchase something else.