Short Sale vs. Foreclosure?

Short Sale vs. Foreclosure?

You make the call!

I get the question from people all the time: short sale or foreclosure, which is the better option? My knee-jerk reaction is always “Are you kidding? Short sale, of course!” This has been mostly because I was always under the impression that a short sale, although still a ding on your credit, was gentler on the score than a foreclosure.

But according to a recent blog post by FICO Banking Analytics, there is no real difference in the affect a short sale or a foreclosure has on your credit score. Both the impact in points and the time to fully recover is about the same for both events.

This put me in a precarious situation. All this time I had lauded the short sale as vastly superior to foreclosure, largely because of its less adverse affects on credit. So I was forced to do further research into which was the better option. In doing so I learned about benefits of a short sale I wasn’t even aware of, and found that the FICO blog was way off.

Each borrower’s credit situation is different, and the way that a creditor reports a short sale to bureaus is different. The reality is that hundreds of thousands of distressed homeowners who have chosen a short sale have experienced a lesser impact on their credit than those who have chosen foreclosure.

In a short sale, a distressed homeowner may be able to obtain another mortgage sooner than someone who has a foreclosure on his or her record. Also, more and more employers pull credit before hiring a potential employee, and a foreclosure can keep you from getting a job. Some employers pull credit reports on existing employees, and a foreclosure may not bode well in certain industries.



These benefits stacked against the negatives of foreclosure, including the embarrassment of public announcement and literally being kicked out of your home, make, in my opinion, short sale the reigning champion.

Now you make the call!

I 'm still losing

I haven't blogged for a while. Too busy. But I have lost weight 2 weeks in a row. Not a ton but I am still losing and not gaining. Yea! I am at 132.8. A lot better that 146.6. Less of me to have more fun this summer.

Yea! I did it again. Down 1.6 This Week

I am now down a total of 12.4 pounds since January 13th.
That leaves only 14.2 to go. It seems like it can happen now. I am almost half way there!!
Now I will go shampoo my carpet in the living and one of the extra bedrooms.
That should help a mite. 134.2 you will be 120 very soon!

Lost.4 Better than Gaining

10 more pounds until I look like my picture!!!

- 1.8 #'s What most folks realize immediately, when they see me, is that I do not quite look like my picture. I was at 125 pounds then. But today I have made a major headway. I have lost 10.4 pounds since January 13th. I am so excited! Just 6.2 until I get to my 10% target goal. Just 11.2 more to get to the picture. AND just 16.2 until I am at my personal goal of 120!!! It is so getting there. Just whittling away a little at a time.
And I have a closing today. A wonderful seller and a wonderful buyer. Can't ask for more than that!

138 Today

Okay so it's not a lot. But it is down and not up. Down .8 pounds is better than being up 1.6 so I am happy. One can go down a hill fast or slow but at least they are on the way.
But it sure made me feel better to get my perfect listing under contract!
Gorgeous home. I know the new buyers will love it. I will miss the sellers though. Great people.

Pondering Life

I just read that Dr. Alan Day had a fatal motorcycle accident. I know a lot of folks will curse the perils of the sport of motorcycle riding. I grew up on a motorcycle so, I, like Dr. Day have a healthy respect, yet not terror of motorcycles. I remember the freedom and relaxation of those rides as a teen. Now I love scuba and water skiing. Of course any of these things can be fatal if just the right thing happens at just the right time. But I have often thought, "What a way to go!"
Imagine riding along with the breeze rushing across your face, and then you are suddenly face to face with Jesus. I can see myself swimming in the sea at fifty feet, among the most beautiful of God's creation and then in a moment; I am at the feet of Jesus!
The chief end of man is to glorify God and enjoy Him forever. So hats off to Dr. Day who like Elijah went to Jesus while fully enjoying the life he was given. I'll bet he was praying as he rode.

138.8

I am so excited. 3 pounds gone this week. I only have 18.8 pounds to go. I made my first 5%WW goal and am heading for the 10%. Then I will go for the final hurdle.
So by spring I will be able to get rid of all my big clothes and wear the smaller ones.
I love success and hate failure so I am pumped!!

Monday Up a Bit!! 141.8

OK...so what do they say about failure?
Don't quit.
Just begin again.
I gained 1.6 pounds on the WW scale last Monday. It was totally due to the Super Bowl. I had a great week until then. After all what's a girl supposed to do for four hours, when her interest level is less than zero. Were it not for good conversation with friends, I could have gained 20 pounds!
But
I have been very good this week and think the 14th will be very sweet on the scale. I can hardly wait to see my weight on Monday. I think I will have made up for the bad week.

The IRS and State tax totals almost made me lose all the circulation in my face. But after looking at the accounts I am grateful that we have it to pay. We usually have extra put back...but at least we do have it!
Someone once said.
"If you're paying taxes, that means you're making money."
So there is that.
The new salon location is going great. I have gotten several new clients. Really nice folks,too. And I am getting good reviews from very appreciated existing clients.
The listing in Blackberry Springs is under contract.
Life is good.
Thank you for the blessings Lord Jesus! Give me a grateful heart!

Third Week 140.2

Lost again! Not as much but still less is more. Down 1.2 is better than up. It is still the size of a baby puppy, or a little over a block of American Cheese. I seem to find value in placing an object of the same weight to get a visual of what may now be missing from this body. Just 20.2 to go!!

I am so excited. I bought Logos 4 Scholar Edition software Friday and have it on my computer. It is amazing. So much information accessed in such an easy manner. Once I get my taxes finished I am all over it. I woke up thinking I could play with it today while we were in hibernation mode due to this weather. Then I remembered that I need to finish my tax reports. Fun times.Always something hanging over my head to do. Lose weight, clean house, do taxes, wash clothes, bathe the doggies.....
This next two days should get me caught up.