Short Sale vs. Foreclosure: Is It The Lesser Of Two Evils?
When you look at a direct comparison of a short sale vs. foreclosure, it really is a no-brainer. Let’s look at it realistically. With a short sale you avoid the dreaded foreclosure on your credit report. Yes, there may be some tax ramifications but you won’t end up being chased down by a bank on a lame deficiency judgment and you will be able to re-establish credit much quicker.
While you may need to talk to an accountant as you more than likely will be issued a 1099 by the bank accepting the short sale to forego the foreclosure, it is much better than being saddled with a judgment.
With a foreclosure, good luck getting a loan for a scooter anytime in the near future. It may even prevent you from getting a job. And depending upon what state you are in your bank could come after you for the losses they incur after they sell your home.
Trust me, if you want to avoid a foreclosure don’t even think of a deed linlieu of foreclosure and most of all RUN
