If you still have time before the sale date, I would highly recommend getting a market analysis from a real estate professional. I would never give up until you have gathered all the information necessary to look out for your best interest. Take Me Home Real Estate, LLC has been an advocate for distressed property owners for the past 3 years and if you'd like more information about your options, I'd love to hear from you.

Lori Jarrett, Broker/Owner
Take Me Home Real Estate, LLC
970-378-2615

Hi Elizabeth,

This is a very common question. A short sale and a foreclosure will effect your credit score by 80 points. If you go to the Fannie Mae or Freddie Mac website who set the guidelines for residential lending they allow a new mortgage in 36 months for a borrower who had either a short sale or a foreclosure on their credit report. Through credit restoration you might be able to get either the short or foreclosure removed off your credit reports, no promises but i have seen it happen. Let's say for example that you have a short sale on your credit report and in 36 months you apply for a new mortgage. The underwritting department is going to view that 'short sale' as a responsible way to get out of debt that you could no longer service. Honestly, this is the only difference as far as credit is concerned.
Let's talk community for a second. If you short sale a property and work with a good realtor, there are plenty good ones out there you can work to negotiate the short sale with the lender and not have another REO on the market. Please do not abandon your property either because it might get vandalized, I know shocking but sometimes teenagers you know and it's summer time now more free time, it's lighter later.
You also might want to consider if you have two loans on the property. In Colorado you have a non-judicial foreclosure. If you have only one loan you might and I mean might be ok to send the property back to the bank. However, if the lender foreclosure by judicial foreclosure this is different. If you have two loans on the property then lender in second position can come after you and I think in Colorado your statute of limitations is 10 years. For more information you can visit my free website which has a foreclosure prevention workshop and please keep my information I can assist you with your credit repair on the other side of the short or foreclosure. Or you can read about me in the June issue of Inc Magazine this month. Good luck to you!

http://www.foreclosureoptionsnetwork.com

With a short sale,you will be able to get a mortgage in 2 years,with a foreclosure it will be 5-7 years and your credit will take a hit of 200-300 points.

Hello Elizabeth,

You're right it's happening and has happened to a lot of people. I would try two more things before giving up though. First call the Colorado Foreclosure Hotline at 1-877-601-HOPE. Second call a Realtor and discuss doing a Short Sale. It's not supposed to be as bad on your credit as a Foreclosure. I don't work the Boulder area but I do know a Realtor who does a lot of Short Sales their. When you pick a Realtor ask how many Short Sale listings they have taken and how many of those actually closed. Even with the good agents, I would guess only two thirds of the ones they list actually close.

Good Luck to you, I hope everything works out for you.

Sandy Kinslow
The Kinslow Team