One of the most frequent questions we're asked is if short sales are essentially the same thing as a foreclosure, when it comes to the future of the consumer. The answer is...ABSOLUTELY NOT!
When it comes to credit reporting, a short sale will 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.
If you'd like to learn more about the misconceptions of short sales, check out our FREE report, The Seven Most Dangerous Short Sale Myths by clicking here!