Upcoming Foreclosures

What is better, a foreclosure or short sale?

Will they really make a difference on a persons credit? Would it be easier to call the bank and tell them to take back the house before you ever fall behind on a mortgage? I have a friend who lost his job and doesn't know what he's going to do, no one wants to buy his house more than what he owes and he wants to get out of it. And if he goes through with a short sale or foreclosure, is he better off just declaring BK as well since it takes many years to recover from that anyways?

Public Comments

1. A short sale is much better. Nothing negative is reported on the credit report. Make sure the mortgage company does short sales. The amount of the difference has to be within a certain limit. Bankruptcy is more devastating. According to the state you live in, yous still might have to pay back the bankruptcy amount. it is an ugly blemish on your credit report.