Foreclose vs. Short Sale

Foreclose vs. Short Sale

In most circumstances today it is more favorable to pursue a short sale instead of a foreclosure.

The short sale process is a more organized process (than it was in the past) for disposing of a home and mortgage you may no longer be able to afford vs. allowing your lender to pursue foreclosure and possible eviction from your home.

FHA and Fannie Mae guidelines generally let you get another mortgage in as soon as 2 years and a day after the short sale is completed.

It is not completely understood the impact on credit scores as the make up of these is proprietary; however, it is suspected that credit scoring is somewhat similar to a "class curve" and in 2010, the a large part of the "class" is struggling. It also seems to recover quickly once the short sale is completed and you remain current on other payments.

Lenders are refining their short sale processes to quicken the process. Currently, we have some short sale transactions closing in as little as 60 days from contract date; but, some can still take a few months to complete.

For More Information on The Short Sale Process:

https://www.HoustonShortSaleSite.com