We get questions on a regular basis from homeowners that are wondering how a short sale will impact their credit. The good news is that a short sale will have far less negative impact than a foreclosure. When you consider a short sale vs. foreclosure, you will see the word “FORECLOSURE” on your credit report. That ‘F’ word will have an impact on getting a credit card, a car loan, or another home loan.
Perhaps most importantly, the short sale process allows the homeowner to purchase another home in as little as two years. With a foreclosure, you’ll have to wait at least seven years. Furthermore, getting into the real estate market in just a few years will allow you to take advantage of the low market and build equity in your new home.