Is a Short Sale Better for the Borrowers Credit Rating Versus a Foreclosure?
Many claim that a short sale is better for the borrowers credit than a foreclosure; however, what evidence do they provide to back up their claim? Credit ratings are determined by a number of factors that are difficult to comprehend or apply to a specific situation. Since the borrower most likely will default on the mortgage while going through the short sale process, their credit is going to be adversely affected. The more payments missed, the greater the hit to their credit rating.
Click the following link for an article on this issue by the Minneapolis Tribune as reprinted on June 11, 2010 by RISMedia: