The financially distressed homeowner has many issues to deal with but probably the most important is deciding on whether to pursue a short sale instead of a forced foreclosure. The attached chart (please contact us for a copy) from the Distressed Property Institute provides an excellent comparison of the homeowner consequences of the short sale vs. the foreclosure. It would appear from the chart that the short sale probably has less negative effects for the seller than a foreclosure.
Although each short sale decision should be based on the homeowners individual facts and circumstances, all in all, a successful short sale is more preferable and has less future negative results than a foreclosure.
Please contact me if you have any questions.
William D. Tucker, III
Tucker Griffin Barnes P.C.