If these two are you only option which looks better Short Sale or Foreclosure on a credit report?

Deal Score0

I know they both hit your credit hard but with my

A) loss of my job
B) total loss of economy here in my area (been job searching for over 6 months now)
C) property value loss to less then what I owe and finally
D) zero collateral or funds available to compensate for balanced owed on mortgage

My only option is either A) let the bank take it or B) do a short sell

Another thing on my mortgage is it’s a VA Home Loan so my VA Benefit will come in and pay the remaining balance (for example I owe 96,000 on my home right now it’s probably worth 90k if I’m lucky) so I sell it for 90k well out of my 36k VA Benefit the VA will take 6 grand and pay the bank the rest

So with that said as well will it affect my credit like a short sell because the lender will get the full pay off amount just from two different sources and I will be able to keep my VA Home Loan just with a lesser award amount allowed?

This is for all the Real Estate, Bankers, and Lenders out there please I have yet to get a straight answer…

Another thing if I short sale and still keep my VA Home Loan just with a lesser benefit amount will I be able to get another VA Home Loan right away or have to wait seven years?

Thanks to all who answer and sorry it’s so long
I have been looking out of state and have had some interviews but I will have to move to find work

1 Comment
  1. Reply
    April 30, 2011 at 1:09 am

    Short sale looks better than a foreclosure.

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