Myth: A short sale seller will have less affect on their FICO credit score compared to a foreclosed homeowner.
False: Over the years, research has shown that the FICO score of a short sale and foreclosed owner has almost the same impact. Both are considered “failure to pay as agreed,” so one versus the other is not better for a homeowner on the sense of credit score. However a short sale seller can purchase quicker than a foreclosed, a future lender would take into consideration the reason for the short sale. When considering foreclosure, a distressed homeowner should discuss with a CPA, real estate attorney, and CDPE Realtor, such as Kristen Jurevch, the alternatives and affects of a foreclosure such as: loan modification, deed in lieu, short sale, etc.