WHAT IS THE DIFFERENCE BETWEEN A FORECLOSURE AND A SHORT SALE FOR MY CREDIT SCORES?
You may have heard of alternatives to foreclosures such as, short sales, and deeds-in-lieu of foreclosure. All of them are “not paid as agreed” accounts and will impact your scores equally. These could still be better options for you from a financial point of view.
Bankruptcy may have a greater negative impact on your credit score. A foreclosure is a single account on which you have defaulted. Declaring bankruptcy may affect multiple accounts and has the opportunity to have a greater negative impact on your credit score.