Foreclosure vs. Short Sale

Foreclosure vs. Short Sale. With foreclosure, credit impact is very bad between 5-7 years. With short sale, the credit impact is only 2 years. Credit score is much less with a short sale. Jobs with security clearance will have issue with foreclosure record, but not short sale. The most important of all is the deficiency judgment. In California, after short sale, lenders (both 1st and 2nd) cannot pursue deficiency judgment and collection by California Civil Code 580E. However, with a foreclosure, first lenders' debt are satisfied, but second lenders will continue to pursue the entire deficiency balance after foreclosure when the loan was not purchase money.

Get your FREE Consultation on Short Sale and Loan Modification and FREE Short Sale Service by calling 310-562-0310 or click here


The above information was gathered by our research and work experience as real estate agents working on distressed properties. Please note we are not attorneys or accountants and we do not provide legal or tax advises. Please consult your own attorney and accountant for legal and tax advises.

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