Michael, Thanks! There is a ton of great information in there! The couple issue I have starts with the statement, "• The homeowner gets a full release from the lender and is not financially responsible to repay the loss the lender takes. "
I've watched and helped buyers with many short sales and have NEVER seen the lender release their rights to recovery regardless of wether or not those rights were exempted by the criteria listed in your post.
Secondly, the information in regarding the FICO score impacts is dated. The latest answer, from Myfico.com is :
How does a foreclosure or short-sale affect my score?
Question
How does a foreclosure or short-sale affect my score?
Answer
Credit bureau reports are limited in how they represent foreclosures today, so it's generally not possible to tell from the credit report if a reported foreclosure is a short sale, deed in lieu of foreclosure, settled account, regular foreclosure, or some other variation.
The FICO® score treats all of these descriptions that appear on credit reports as serious delinquencies, so they have an impact on the score similar to the impact from a charge off, tax lien or account included in bankruptcy.
I sincerely thank you for engaging in the thread and appreciate your input. There is some great info there! What was the source by the way? (if you're willing to share)
James, The home auction was a project we worked on over a year ago, we are not participating in any home auctions any more.
We handle each call individually but we always recommend legal and tax council prior to an owner making any decisions. We have found Michael's one word answer, "PRIDE" to be a huge factor in the equation but it does not lead everyone to make decisions that have higher financial impacts and sometimes foreclosure may provide a better outcome.
