|As the recession grinds on, more and more folks are finding themselves upside-down on their mortgage. They owe far more than the home is worth and have no way to keep making payments. When faced with the choice between foreclosure or short sale, is there really a better choice? Both have their pros and cons. Short sales are gaining in popularity recently, as witnessed by the 12 percent uptick in short sales from this year’s first quarter and a downturn of eight percent in foreclosures for the same period.
When deciding which course to follow, you’re choosing the lesser of two evils. In most cases, you’ll find a short sale will leave you with a better credit rating, dignity and peace of mind. A foreclosure will have a worse effect on your credit rating for a longer time.