In a nut shell.
1) Credit Score wise, short sales are less damaging than foreclosures.
2) There are less points taken away from a Short Sale than a foreclosure.
3) You get the proud to say "I sold my house" rather than "I got kicked out of my house"
4) You will be able to buy another house again after 2 years of closing escrow on your short sale.
5) A foreclosure leyend will be a BIG obstacle to get credit for pretty much everything.
a) Another House.
b) A Car loan (if you do get it, your rate will be 3 times higher)
c) Credit Card aplications.
d) Store credit.
e) I have even heard that for employement applications a foreclosure is an issue to get the job.
f) etc. (You see how much you are losing just for procastinating about short saling your home?)
6) In a short sale you know when you are going to move, so you have time to locate a new place.
7) Some lenders are willing to help you to move out.
For more information about Short Sale, contact me.
I am a short sale agent specialist.
visit my website at www.carlmorales.com
email me: cmorales@ochomes-estates.net
Number: 714-955-1932
Carlos,
Nice summary.
Brian
Good post! You should add though that the time frame is uncertain with a short sale. I had a short sale approved 3 days before auction, quite tense situation, it took 6 months to get the bank to approve (3 different case managers...)