Fri, October 3rd, 2008
Short Sales or Foreclosures, and Deeds In Lieu: Which is Best or Worst for My Credit Score?

I was discussing this crazy market the other day with a friend of mine who runs a very solid mortgage firm.  His name is Andrew Vierra, and his business is WealthWise Mortgage Planning.  He asked me a simple question that I think many people are asking.  In fact I hear it more and more these days: What’s worse for your credit, a short sale, a foreclosure, or a deed in lieu of foreclosure?  The short answer is a foreclosure.  But a deed in lieu of foreclosure can have much the same effect.  And a short sale, while it may negatively affect your score, it’s not considered to be nearly as bad.   Here’s an article from a good site that helps describe this as well.  

Everyone’s situation is different. Some cannot wait for a short sale to possibly occur.  Some don’t have the resources to wait it our or to bring in a broker.  Others can, and give this option a shot, hoping that they don’t regret the long and tedious process.  Others, frustrated by the whole situation, just stop making payments and let the upside-down property go.  Your best bet:  talk with your agent.  Get his or her best advice.  Or talk to your mortgage broker or attorney.  They see it all day long and may give you a fresh look at your options. 

Posted by Nick Yonano at 09:32     0 Comments
Labels: Mortgage Default, broker, foreclosures, housing market, short sale

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