Short Sale vs Foreclosure State Law vs Federal Law

Mortgage debt relief act expires , Forclosures, Short Sales Any homeowners end up having to choose between foreclosures and short sales. In order to make the right decision, a borrower should weigh the pros and cons of each scenario. The following information highlights the most important differences between a short sale and a foreclosure.

Effect on Credit Rating and Credit Score

A short sale is often sought by a homeowner who would like to avoid the stigma of a foreclosure. The biggest drawback of a foreclosure is the black mark that it leaves on a person’s credit rating. Indeed, a foreclosure can bring down a FICO score by a whopping 200 to 300 points. A short sale, on the other hand, usually brings it down by approximately 50 to 130 points. A foreclosure shows up as such on a person’s credit history; a short sale shows up as “settled for less” or a similar designation. No matter what, a foreclosure will negatively impact a borrower’s credit quite severely; unless a mortgage was already severely in default, though, the negative consequences of a short sale on a borrower’s credit rating is far less severe than a foreclosure.

Effect on Future Home Loans

With a foreclosure or a short sale, most borrowers cross their fingers for a new start. In either case, they will need a new place to live. As a result, they may need to apply for a new home loan at some point. When filling out most loan applications, a borrower is required by law to disclose any foreclosures from the past seven years. Since a short sale appears as a home sale, though, it does not have to be disclosed at all on a loan application. This can help swing the balance in a loan applicant’s favor, making it possible to buy a new home sooner if and when your personal circumstances improve.

Effect on Eviction

In the event that a foreclosure goes through to completion, the borrower generally has to vacate the premises immediately or very shortly after the foreclosure sale is finalized, depending on the legal process in your state. Ignoring notices to vacate the house result in actual eviction where you and your family will be escorted out of your home by law enforcement as the locks are changed, leaving your family stranded. You will then be at the mercy of the new owner to remove your belongings, and may also have to deal with the consequences of having an unlawful detainer (i.e. eviction action) come up on background screenings when trying to rent a new home. If nothing else, the short sale process can postpone the eventuality of foreclosure, avoid the ugliness of forced displacement and give homeowners extra time to come up with new plans.

Control of the Process

During the foreclosure process, all of the control is in the hands of the bank or other lender. The borrower’s hands are basically tied and the process unfolds according to the lender’s terms. With a short sale, though, a borrower has a lot more control over the process and a tremendous amount of input to affect a positive decision. Assuming the short sale is approved, the borrower can avoid foreclosure and drastically reduce the negative impact that the situation has on their credit history. In other words, a real estate short sale is a much more proactive way to handle the situation.

Pest Control Apartments

Apartments are the worst about roach infestation, and it will probably never change, but you can do something about your rental to stay free of these prehistoric little monsters. The problem is that all residents are not as clean as certain tenants when comes to keeping their home in order.


Leaving dirty dishes in the sink, not taking the trash out daily, and leaving pet food on the floor just begs roaches to enter your rental home. Even thought the management is required to provide exterminator service, usually it is done by the maintenance crew, and they use mostly watered down over the counter products.


It would be wise prior to moving into any apartment to have a pest control service company come out and pre-treat your entire unit. This will have them running to the neighbors and staying out of your apt for about three months. Granted it is an extra cost above and beyond your monthly rental, but to be sure that roaches are not crawling on your children at night while they sleep will give you peace of mind.



Check with management before you even sign a lease to see if having a  pest control specialist come out is permissible. If not then it is this author’s opinion that you should keep looking until you find a property that encourages pest control paid for by their clients.


In addition, keep in mind you can do things around the home on a regular basis that will make it less attractive for roaches to reside with you. Bringing in old cardboard boxes, or paper sacks (they are not used as much, but those grocery store paper sacks will have roach eggs in them, and will hatch after you have store the sack for use later.


You may ask what roaches eat, and the answer is anything that is organic, but they especially love protein, and that can be even in glue that holds books and decorative covers on items around the home. Food crumbs, dried mayonnaise on a counter, cat, dog, and hamster food is a favorite, and if they get into your dry pantry, and the packages are easy enough to chew through they will do this as well.


Roaches will rarely bite a human, but open sores should be covered up on humans and pets at night just in case. Ask your pest control expert if they can supply your apartment with baits, and a gel to further prevent the roaches from entering. Remember they can come back, even if you keep a clean home, as your neighbors will be inviting them back in with bad habits of leaving food expose overnight for them. See to avoid pest in the apartments.