Despite the discussion of recovery and being at the real estate bottom, many homeowners are still faced with the tough decision: Short Sale or Foreclosure? People facing a short sale or foreclosure have a lot of choices to make and depending on those choices the impacts can be greater and last longer. Here 8 different financial areas impacted by a short sale and foreclosure.
Short Sale or Foreclosure? A Homeowner’s Comparison
| Credit Score | ||
| Credit History | ||
| Tax Consequences | ||
| Proceeds to Seller | ||
| Deficiency Judgment | ||
| Future FNMA Loan Primary Residence | ||
| Time to Complete | ||
| Future Effects on Employment, Security Clearances |
Looks like it’s better to short sale a house than face foreclosure.
As you probably know, short sale impacts a person far less than a foreclosure. The difference which people may seek foreclosure over a short sale is the possibility of a deficiency judgement. I’ve seen the deficiencies be waived but a lienholder’s discretion may vary.