Short Sale vs. Foreclosure

Short Sale vs. Foreclosure:

Short Sale

1.      Will avoid a foreclosure on your record

2.      Any commission or closing costs are usually paid by the lender, NO OUT OF POCKET EXPENSES to the seller

3.      May allow more time to find a new place as opposed to being evicted

4.      May still have a negative effect on your credit

5.      Deficiency judgment may be avoided

6.      May face deficiency judgment for balance owed

7.      May also face a tax liability (Consult a tax professional)

8.    You can move forward with your life and not worry about your house

Foreclosure

1.      Long term damage to your credit

2.      Prevent homeowner from attaining a new home loan for some time

3.      Stays on credit report 7 – 10 years

4.      May interfere with renting due to foreclosure

5.      Possibility of a deficiency judgment for balance owed

6.      May also face a tax liability (Consult a tax professional)