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Short Sale vs Foreclosure impact on credit

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Short Sale vs Foreclosure impact on credit

I have heard tons of different opinions from realtor to our CPA on a rental property we own (used to be owner occupied but due to layoff we had to move out of state). I am wondering because I've been told by a trusted the source that a Foreclosure is actually better for us all around and not that much different when/if down the road we go to apply for a mortgage vs. a short sale. It's always the realtors who seem to push a short sale. A friend told me that on a short sale you can actually be taxed on realtor's commission also. So if and when we do apply, are they about the same? In other words --they both suck!!!
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Moderator Emeritus

Re: Short Sale vs Foreclosure impact on credit

I don’t know if I have ever seen a short sale’s impact on credit.

Foreclosure you walk 30D and down the entire way to get FC and it wasn’t pretty for the one person who tested it in the name of science.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/From-800-to-Foreclosur-e-How-Negatives-A...

Some states (California) let you just hand the keys to the bank if you haven’t done a cash-out refi in Cali’s case; if you live in a consumer friendly state might be worth checking on that.



        
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