· A short sale is less damaging to your credit rating and can be restored quickly. A foreclosure can affect your credit up to 400 points and can remain on your credit record for 10 years.
· You are able to purchase a home again in 2-3 years instead on 5-7 years with a foreclosure on your credit history.
· A short sale can be reported in a number of ways, but typically, it is reported as paid in full. A foreclosure can remain on your credit report for 10 years or more.
· After foreclosure you will have to disclose “yes” to the question, “Have you had property foreclosed on or given title or deed in lieu thereof in the last seven years” on future loan applications. This can impact the interest rate you are charged. With a short sale there are no similar questions.
· A foreclosure can cause you to lose a security clearance in jobs where this is required. A short sale does not have an impact on security clearances.
· With a short sale, when you sell your home for less than you owe, you don’t have to pay your bank the difference. Because you will not receive any proceeds, the lender typically pays for all closing costs and commissions that are associated with the sale.
· You can take comfort in knowing that you did the right thing for yourself and your lender. You did not just walk away.
· You are in control of the sale.
· Your home sale will be handled like any other home sale.
