A Foreclosure:

• Severely damages your credit

• Makes you ineligible for a new loan for up to 5 years

• Guarantees you'll pay a higher interest rate on future loans

• Makes you more susceptible  to your bank filing a deficiency judgment against you to make up for their losses

• Can result in the revocation of a security clearance

• Makes you vulnerable to job reassignment or termination

Filing bankruptcy:

• Is even worse than a foreclosure for your credit

• Makes you ineligible for a new loan for up to 10 years

• Guarantees you'll pay a higher interest rate on future loans

• Prevents a deficiency judgment, but it doesn't necessarily stop foreclosure* 

• Can result in the revocation of a security clearance

• Makes you vulnerable to job reassignment or termination

 * Chapter 7 Bankruptcy only postpones foreclosure for 3 - 4 months. It doesn't prevent it. Chapter 13 Bankruptcy is a structured repayment plan in which you'll pay your mortgage in addition to arrearages. So your monthly payments will go up, not down. If you fail to make these payments, your home will be foreclosed upon.

A Short Sale:

• Gives you a better chance of salvaging your credit

• Makes you eligible for a new loan after 2 years

• Greatly mitigates the likeli-hood of you paying a higher interest rate on future loans 

• Gives you a good chance of avoiding a deficiency judgment

• Has no effect on a security clearance**

• Does not effect your job 

** Excluding other settlements or bad debts

Finally, and most importantly, the sooner you get started with the short sale process the better. The longer you wait, the more rapidly your home will depreciate in value, and the less likely your bank will be willing to workout a deal. Contact Us today to get started.