What is the difference between short selling and foreclosing?
• A foreclosure will have a devastating impact on your credit score. Not only will this significantly drop the score, but will prevent the person from obtaining any type of financing for 7-10 years. Even after this period, the mortgage loan application will always state that the borrower had a foreclosure in the past, and can seriously affect future credibility. • A short sale will affect the credit, but not nearly as much as a foreclosure. The credit will be negatively affected for approximately 24 months,. By Fannie Mae Guidelines, one should be able to purchase another home after 24 months of having done a short sale. • A short sale can be handled discreetly, even without alerting your neighbors. In contrast, a foreclosure involves a public announcement. • With a foreclosure, a lender can assign a judgment against the homeowner and garnish remaining assets such sa bank accounts, income, etc. With a short sale, we pressure the lender to let you walk away free and clear without any de
