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Q.Will a short sale “save my credit”?
A.Yes and No. Once you have missed payments on your mortgage and once the foreclosure process has begun, there is already damage to the owner's credit score that will remain for years. However, a short sale will prevent further damage and may even bring the credit score back up a bit. When a short sale is completed, typically your credit report will report the default as either a "charge-off" or a “Paid” mortgage and a canceled foreclosure. Sometimes what they report can be negotiated during the short sale process. Often the alternative to a short sale is either foreclosure or bankruptcy. A bankruptcy stays on your credit report for a decade.
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