Short Sale vs Foreclosure

Short Sale vs Foreclosure

 

 

 

Short Sale

Foreclosure

2-3 years to regain a positive credit standing.
7 years to regain positive credit standing.
Written on your credit report:
“paid as agreed”, “paid as settled,” “paid in full,” – all very similar, little affect on your credit standing.
Written on your credit report:
“foreclosure”- reduces your credit rating by hundreds of points.
You can control the amount of credit lost:, the less of your credit is lost with fewer late payments you have.

Contact your bank immediately when you know you are having financial difficulties cannot afford your home.
The credit bureaus have a systematic way of handling foreclosures. To foreclose means you are starting over with your credit.