short sale vs. foreclosureHaving to choose between short sale vs. foreclosure is one of the most harrowing life situations an individual can be in. The most horrifying thing about it from my perspective is that it can happen to anybody. Even the most fiscally responsible person can find themselves made redundant or suffer an unexpected long term illness. What’s more any person who has to choose between short sale vs. foreclosure is already stressed out and anxiety can cloud a person’s judgment.
If I had to choose between short sale vs. foreclosure I have a feeling that I would choose the former. I know that the IRS can tax the difference between the mortgage balance and the lesser amount the house sold for with a short sale, and this is a major drawback. However I would rather have to pay taxes on money I never received than take a larger hit on my credit score because of a foreclosure. The truth is that the impact of a foreclosure can last for years after the actual event. Hence when it comes to short sale vs. foreclosure the latter is definitely the worst of the two.