Is there any difference between a short sale and a foreclosure in terms of how they affect your credit?

Both will be a negative impact on your credit, however the short sale will be less of an impact.. With FHA, there's a loan product where you can purchase a home right after a short sale providing you had no late payments on the home, or any other obligation you had.. there are other guidelines that must be followed, but there is a loan out there... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

No... In terms of your credit, both seriously effect your credit, and credit score for years and years. A short-sale is not much better on your credit report. You caused a lender to suffer a loss, and that is never good on your credit report. In terms of buying a new home in the future, a short-sale MAY POSSIBLY allow you to buy again a little bit sooner than a straight foreclosure, but there are a lot of buts, and ifs, depending on your individual situation. www.JoeMetzler.com

Westerville, OH huh? I actually went to Otterbein College. Yes there is a significant difference. Short Sales are much better on your credit and you can purchase a home within 1 day out of short sale with no late payments. If there are late payments then it's 2 years after. A foreclosure is 3 years for FHA. I would always recommend a short sale. If you need any help don't hesitate to give me a call. P: 888-320-7888 - www.MortgagesforAmerica.org - Ken Burrows

Absolutely. A short sale does not effect your credit as a collection/charge-off. It shows as "paid" when you finish the short sale. Also, lenders do not mandate a restriction on when you can purchase another home after a short sale.However, if you allow the home to be foreclosed, that's a different story. Your credit reflects a foreclosure just like a collection/charge-off and the lenders will also restrict your next home purchase to more than 3 yrs after the foreclosure is complete.A short sale is definitely the best case scenario.

Yes, always do the short sale if possible, but continue to make all payments until paid off. After a clean short sale you can buy right away, after a foreclosure, it is a minimum of 3 years.Call us or email us at 201-962-3555 or Team@BestMortgageOption.com for ano cost no obligation analysis of your situation.Ask for Michelle or Benny We will find the Best Mortgage Option to suit your needs!You can check us out at www.BestMortgageOption.com

HOMEMORTGAGEXPERT.com there are some really great answers posted here.

Hi, I agree Ken Burrows entirely. However, to add to his comment about late payments. That's late mortgage, late revolving, installment, no late payments in the last 12 months are allowed for FHA. VA says regardless of findings they want three years for shortsale, short payoff or foreclosure. There are casebycase exceptions to the three year waiting period. Seven year waiting period for those wanting to borrow more than $417k. Conforming is different yet. Two years if due to extenuating circumstances. Four years if the short sale wasn't due to extenuating circumstances. I'm sure, no matter the loan program, that you'll have to prove there was no deficient balance or judgment if there's not a bankruptcy involved too. Best,Kimberly Lawson Licensed Ohio Loan OfficerPhone/Fax: 888-659-3848EMAIL: kimberly.Lawson@fpfmail.com Licensing: NMLS: 5601 OH.LO.004495.000 First Priority Financial, Inc. "Where Open Minds Close More Home Loans"748 N Court St Ste 201 Medina, OH 44256 MBMB.850147.001 NMLS: 3257 We are an equal opportunity lender.

You have recieved a number of very good replies. As the others have said, the Short Sale is the best choice in most cases. I would suggest that you talk with a lender as your proceed. To qualify for a Purchase after a short sale with the FHA option, you need to make sure you follow the guideline/rule 100%. Do not ASSUME you are doing everything you need to do. Verify it with the lender you plan on using for the new purchase.

You have received some great answers to your question. Kimberly Lawson's is probably the most complete and on target.

You have received some great answers. Kimberly Lawson's advice is the most complete. You should contact her directly and follow her advice to the letter. Good Luck!