Advantages of a Short Sale
Short Sale vs. Foreclosures
Short Sales
Consequences on a seller's credit report
- Noted as "debt settled for less than full amount due"
Potential tax relief
- Mortgage Forgiveness Debt Relief Act of 2007 may allow seller to avoid
adverse tax consequences
Faster resolution
- Seller able to move on with their life
- Easier rebuilding of credit
- Typical 2-3 month process
Foreclosures
Significant consequences on credit report
- Typical 250-300 point credit score reduction
Loss of VA eligibility
Potential loss of security clearance(s)
Lengthy process
- Typical 8-12 months process
