is a short sale better then a fore closer on you credit?

Answer 1

much better and if you are offer it jump on it!!!

Answer 2

Congress is in the process of approving a bill which will be retroactive to 01/01/2007 on forgiven debt which a short sale would create to you from the lender. And yes it is much..much better than a foreclosure. Remember, if your behind on your payments by 31 days (1 month) foreclosure officially starts, most lenders will not even let you know that the process has started until there 30-45 days from the foreclosure sale, which would make someone hard pressed to do a short sale. If you know you cannot afford your house find a realistate agent ASAP even before you 30 days late and get the ball rolling on a short sale, houses in most area's are selling for much lower than they were a year ago, you'll need to find what the Comps are doing in your area and price your house below that, remember your on a clock. Banks in general are waiting until someones already deliquent before suggesting a short sale but that doesn't mean you have to wait. Make sure any Purchase and sale agreement states "upon lender approval" someplace, it will protect you from buyers incase the lender refuses an offer. And another thing about the forgiven tax ramifications, most lenders will only approve a short sale if the homeowner is basically insolvent anyways so even if congress doesn't pass the bill you'll may be all set anyways. My Lender is taking 30% less than I owe just incase you were interested. That 30% makes up the real eastate sales commision and stamps so its probably closer to 20-25% below what you owe but thats changing as the market keeps crashing on home sales.

I am not anybody I just know from going through a short sale like right now closings in 7-10 days.. good luck..

Answer 3

Yes.

The short sale is an agreement between you and your lender to settle the debt for something less than you owe.

The foreclosure means you never settled and the lender had to take the property and sell it in order to recover anything.

The short sale could be reported to the credit bureau, but a foreclosure would definitely be reported. Look out for having to count the difference between the short sale amount and the amount you owe as income to the IRS.

good luck!