Should I Short Sell or Go Into Foreclosure?

This is a very difficult decision and one that should be made with the input of an agent who is experienced in working with distressed properties. If your home goes into foreclosure, your credit will be affected and the foreclosure will be a matter of public record. However, you do not need to have your lender’s approval and will be absolved of any further responsibility for the mortgage payment.

A short sale allows you to avoid foreclosure and salvage part of your credit rating. You may also be able to qualify for another mortgage in as little as 24 months (as opposed to five years for a foreclosure). However, you will need to have your lender’s approval and demonstrate that you qualify for a short sale. Undertaking a short sale can be a difficult and frustrating process that is best handled by a qualified real estate agent who holds the CDPE designation. For more information about short sales vs. foreclosures see the CDPE chart below.