A Short Sale or A Foreclosure?
Homeowners often ask us this popular question: should I choose a short sale over a foreclosure, or should I just let the place foreclosed? First, whether you should do a short sale or let the home go to foreclosure depends on your situation. Second, your lender actually does not want foreclosure.
There are some advantages to a short sale over a foreclosure.
1, you can start the long road to credit recovery sooner because foreclosures usually take much longer than short sales.
2, you can qualify for another mortgage faster. Lenders typically will consider you for a home loan two years after a short sale, versus a wait of up to seven years if you let the current lender foreclose.
3, you can avoid “foreclosure” entry on your credit report when a short sale was successfully approved and closed.
4, you should look into doing a short sale vs a foreclosure if you really have a top level security clearance, because of the negative impact a foreclosure can have on your security clearance.
