Daniel RosenCredit Repair Business Mentor | Insights from 250+ Podcasts

Should I Short Sell or Foreclose?

29 Jan 2025 · 1 min

Watch on YouTube

0:30

A short YouTube monologue by Daniel Rosen comparing short sales and foreclosures for homeowners who can’t afford their mortgage. Rosen’s central claim: lenders commonly treat short sales and foreclosures the same for credit reporting—both are reported as settled for less than the full amount or not paid as agreed, so the stigma difference may be overstated.

Chapters

If I can't afford my mortgage, why not just foreclose? Well, the bank will try to convince you that a short sale is the better option because it helps you to avoid the stigma of foreclosure. Sounds good, right? But here's the truth. Most lenders don't care, and they treat them exactly the same. Whether it's a short sale or foreclosure. Both get reported to the credit bureaus as settled for less than the full amount or not paid as agreed.