First off, you should speak to a mortgage banker or broker to get the specific answers to these questions based on your current credit situation and your personal qualifications. In my experience as a real estate agent, I would dare to say that the forbearance would have a more detrimental effect to your credit. Either way it will be hard for you to get a mortgage within a years time. With a forbearance you may have to wait as long as 7 years and with a modification you will have to wait 2 at least 2 years.
If I can be of further assistance, please contact me direct. Also, if the property you currently own is in Brooklyn and you do want to sell it, please contact me, I can prepare a comparative market analysis for you and help you to figure out how much your home is worth and how to go about selling it for top dollar. I have been selling homes in Brooklyn since 1993 and I would love the opportunity to help you.
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783