Many borrowers wonder, “Why bother with a short sale? Shouldn’t I just let my property go to foreclosure?” – In most cases, the answer is ‘no.’
A short sale is a much better alternative to foreclosure or a deed-in-lieu of foreclosure because a short sale is usually less harmful to your credit and your future ability to borrow.
A foreclosure will remain on the credit report for up to seven to ten years. With a foreclosure on your credit, it usually takes 5 years before new mortgages may be obtained.
The benefit of a short sale is that you may be able to purchase a new home in 2 years or less. Additionally, many loan applications ask whether you have had a previous foreclosure or bankruptcy.
So, if you own real estate and you are considering the alternatives, a short sale may have a better impact on your future ability to borrow.
Originally posted at http://servingsandiegocounty.com/for-sellers/short-sales/why-do-a-short-sale/