Well you have to be careful with a short sale because there are some lenders that will still come after you for the remaining balance meaning lets say your home sold for 200k but you owed 280k well the lender in some instances can come after you for that 80k putting a lean on your credit. Not all lenders do this but you want to make sure that they wont and get that in writting, I forget what the form is called but your specific lender will know. Now with a foreclosure thats an entirelly different ball game, it damages your credit for 7-10yrs making it all most impossible to own a home again for that time frame and difficult even to rent (you want to use that as a last option). However homeowner ask yourself has this always been the case, have your mortgage payments always been dificult to keep up with? If so then you may want to take advantage of a new program that enables you to hold your lender accountable for putting you into a toxic mortgage it hits them where it hearts, there own paperwork. Do you research and know your options, remember this lenders pray on the ignorant hope this was helpful!


Vincent Dutye
Fraud Investigator
U.S Loan Auditors