How does a short sale and a foreclosure differ on my credit report?
Foreclosures show up as FORECLOSURE, and can stay on your record for seven years. Any time that you apply for a loan, it will show up on your credit report and will in nearly all cases affect your terms and or ability to qualify. You will also often be required to disclose that information when applying for a job or renting property. A short sale is usually listed as SETTLED DEBT, or some slight variation thereof. This is much less harmful to your credit than FORECLOSURE. We advise you to consult a credit company to see how it may affect you.
