Will a short sale affect my credit just as badly as a foreclosure?
Question:
Answer:
Theoretically, being able to complete a short sale will put you in a better situation credit-wise, than if the foreclosure was completed. A short sale will only reflect on your credit as the mortgage being paid in full. A foreclosure will, obviously, say that it's a foreclosure.
However, if the rest of your credit is filled with late payments and collection accounts, you'll have just as hard of a time repairing your credit either way. Your credit score takes your whole history into account, so if you have a bunch of late mortgage payments, those will reflect negatively whether you get the short sale or not.
A short sale, though, would give you a much better chance at getting a new mortgage sometime in the future. And it's a much better solution than just letting the house go to foreclosure.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
For lending purposes, lenders will treat it the same. There are "giveaways" on your credit report that will cause an underwriter to call the mortgage company and inquire.
When short-sale is discovered, it must meet foreclosure seasoning requirements, which is 3 to 5 years.
as far as I know, only foreclosure may affect it.
http://fundszine.com/28-how-to-improve-a...
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