As very credit-conscious people, my husband and I constantly watch to make sure that our bills are paid on time, we don't have too much available credit, and we are living within our financial limits -- not our credit limits.
We recently found out that we will soon be falling into the "laid off" category with his job, and are now having to weigh the options with our mortgage and finances. Honestly, the housing market in our area has dropped tremendously due to foreclosures, and we will not be able to sell our house for enough to cover our mortgage. AND, we aren't sure if the bank will work with us just yet. But, these are our only options when the time comes....
Foreclosure or Short Sale(because our house is not worth as much as our existing mortgage) or Rent it.
For us, leasing our home is not an option. Too much effort that we won't even be able to enjoy.
Foreclosure, will ruin our credit worthiness FOR LIFE because even after 7 years, we will always have to report it when applying for any loans. It could also affect any jobs that we apply for. Basically, we'll be seen as a liability...
Or, we can short sale. Our credit score will be minorly affected, temporarily, and we will never have to report it, nor will anyone know (unless we tell them).
The reason for the title of this post, is because right now, it seems our life is out of our control, but if I focus on the future, and my husband thinks about the best for our family's future, we know that a short sale will, hands down, be the best alternative if and when we reach the bump in the road.
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