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Foreclosure vs Short Sale in Illinois
| Issue | Foreclosure | Short Sale |
| Credit Score | Score may be lowered anywhere from 250 to over 300 points | Score may be lowered as little as 50 points. Carries less negative effect. |
| Credit History | Foreclosure will remain as public record for minimum of 7 years. | Short Sale is typically reported as "paid in full" or "settled debt on a credit history. |
| Purchasing another home | Waiting time to purchase a home can be 5 to 7 years. Stricter guidelines for future lending. | There may be no waiting or as little as 2 years. |
| Security Clearances | If a client is a Police Office, in the military, CIA, Security or any other position that requires security clearnaces, in most cases clearance and employment can be revoked | Short Sale usually does not challenge most security clearnace issues. |
| Future Employment | Many employers are requiring credit checks on all job applicants. A foreclosure can challenge employment | Short Sale is not reported on a credit report. Therefore not a challenge to employment. |
| Deficiency Judgement | Banks may pursue deficiency judgement. | Can often negotiate to zero or as low as pennies on the dollar. |
Source: Gardi & Hardt, LTD.
