Short Sale vs Bankruptcy (Differences mad Simple)

Short Sale vs Bankruptcy (Differences mad Simple)

The effects of bankruptcy and a short sale are different. Although both are an alternative to foreclosure, you should consider how the end result will affect you in the long run.

Bankruptcy:

- Appears on background checks that can be seen by prospective employers

- Appears on your credit and financials which will affect your ability to borrow money

-Bankruptcy records are open to the public and remains in the public records

Short Sale:

- Appears as a “settled debt” on your credit report

- There is no deficiency judgment after a short sale

- Not affect security clearance or appear on background checks

- Purchase another home faster than after foreclosure or bankruptcy
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