Short sale vs. foreclosure: Which is less painful?
Foreclosures against your property can end up crippling your credit. Your credit report will reflect your "foreclosure" and this judgment against you will appear permanently in your report. If we’re talking about short sale vs. foreclosure, short sale wins. Short sale is the least painful option for you. If you go with a short sale, your credit will report as "paid - settled" or "paid - satisfactory.” These ratings will lower your FICO credit score but not as much as foreclosure. If you end up with a good negotiation with your lenders, they may even report your short sale as Unrated or simply report nothing at all. I empathize with your problems. That’s why I made a "short sale" exclusive report on my website for you. Just sign up for my high-quality newsletter to get useful tips on how to make optimal decisions about your property.