Short Sale VS. Foreclosure
- A short sale will affect your credit approximately by 100 points. A foreclosure will affect your credit at least by 200 or more points.
- Some employers are rejecting applicants for job positions if there is a foreclosure on a credit report.
- Credit can be re-established and one can even buy a home with in 1 year from a short sale date with a good down payment.
- A foreclosure will put a person out of the playing field for any new loans for about 5 years.
- A home owner can live in the property while the home is in short sale status and pending bank approval without paying a mortgage or rent.
- The Mortgage Forgiveness Debt Relief Act of 2007 gives a break to the taxpayer on the debt forgiven for a loan secured by a qualified principal residence. To find our more go to www.IRS.gov.
- Some banks are offering a cash incentive for sellers to do a short sale.