Over the past 8 years that I have been involved in assisting Distressed Homeowners to Avoid Foreclosure, the opinions of so called experts have been plentiful. Many of these expert opinions were contradictory, and what is worse, just flat wrong. I’m sure most of them were well intended, none the less incorrect information delivered by perceived experts has led too many Distressed Homeowners down a more destructive path than necessary.
Among the most common and most uninformed opinions, was the idea that short sales have just the same effect on a homeowner as a Foreclosure. This has led too many homeowners to needless foreclosure, and a more rocky path to recovery than may have been necessary.
I have am providing a report for the sole purpose of dispelling the Foreclosure vs. Short Sale Myth and better inform Distressed Homeowners about the options available to them. This report is available to you, free of charge, just click on Free Report. Following are a few of the topics covered in the report, with brief explanation. More detail about each topic can be found in the report.
The typical Foreclosure affects a credit score between 250-300 points and the affect is for 3 to 7 years.
The typical Short Sale affects a credit score is as little as 50 points and the affect is for as little as 12 – 18 months.
A Foreclosure stays on a credit report for 7 years. There is no category for a short sale so it shows as a paid account.
Ability to get Future loans
There is a specific question on every loan application form 1003 asking if you have had a foreclosure. That question must answer yes forever after a foreclosure. There is no such question about short sales.
Current and Future Employment
It has become more common in the past 10 years for potential employers to run credit checks. In some cases, employers are keeping tabs on the credit of current employees as well.
Some military and other highly sensitive jobs requiring security clearances depend on good credit ratings.
A quick review of the facts makes it pretty clear. There is no situation in which it is better to allow a foreclosure rather than short sale the property to avoid foreclosure.