Only bankruptcy stays on for 10 years, foreclosure is 7 years.
7 or 10 years it still is a bad record
You do NOT make payments while the short sale process is happening. I have clients who stayed in their home for over a year making no payments while short selling. Also, my recent seller just got a $3,000 check handed to him after closing escrow. There is no recourse on a purchase money loan now due the new CA. law.
Than he has never had to short sale and experience what the pro and cons are. Anyone evaluating someone for a loan would give it to the person with a short sale vs someone that did nothing all things being equal. If you chose to short sale instead of walking away you suffer a credit hit. If you foreclose and do nothing than it would communicate irresponsibility. Credit is evaluated on more than a score. If your credit history was great prior to mortgage issue than the history shows more about who you are than the short sale. ? ? ?
Jade - you do not have to be behind on the mortgage to complete a short sale - I have 3 right now where the Sellers are not behind. However, you do need hardship - loss of job, health issue, divorce, mortgage increased, family size increased (and current home is no longer practical), depleted savings, pay cuts, etc. You should definately work with an experienced Realtor who in my opinion has completed at least 10+ short sales - Also, I am a Certified Distressed Property Expert (CDPE) and gain valuable information that is shared within the community. Ideally, someone in the Advance program - If you would like a referral, please contact me at bob@inspiragroup.com or call at 949-387-0500 x 101… We can help!!! Demian - we typically can get better terms then that - I have had clients where the banks have written off over $350,000 in loss and the clients did not have a note or any recourse. In fact, not one of my clients has taken back a note - In CA, if purchase money, then there is no recourse and the banks know that. Also, typically the homeowner do not have large assets and the banks have not wanted the last penny form a distressed homeowner. I’d be glad to give someone a no obligation consultation, by simply e-mailing my your situation - please state which bank(s) are owed, what the hardship is, what city/state your home is located, how many months behind in the payments (if any) and whether purchase money or refinance loan(s). BOB - MBA, CDPE bob@inspiragroup.com Tue Sep 1st 2009 at 11:39pm