Will the short sale process have an impact to your credit? Yes, there will be an impact to the homeowners credit worthiness based on the transaction, but the impact with a short sale (which could be repaired within just a few years with hard work and determination) is far less than that of a forclosure, which could freeze all of your financial abilities up to the next 10 years regardless of any repair or hard work that you put into building your credibility back up.
In a short sale there are losers and winners. The bank does not get repaid what it originally loaned, and the homeowner takes a credit hit. But the borrower does get out of his house, and the bank keeps another empty house off their inventory. This situation is hardly unique, "Ten percent of the people whose houses are for sale right now believe that based on the current market home value, they may get less out the sale of that home then they owe." What now? "Short Sale"!
Banks agree to a short sale because they recover some of their money. Treasure Valley mortgage brokers say banks are paying the price for the economic mess they helped create -- giving loans to uneducated first time homeowners who might not have qualified for a loan in the first place.
The majority of borrowers that fall into this type of situation say that they do not feel good breaking their promises to pay back their loans in full. But have fallen into situations where they have limited options to try to correct a problem that they were not fully educated about in the first place.
"My personal opinion is that if you can stay where you are, you like your home, and you don't want to move then stay there. But if you can't, do what's necessary and seek out good advice for your situation, and let the realtors like myself who specialize in short sales help you to create a brighter future for yourself and your family."
Don't feel like you are alone out there in this situation there are many options for you to look at, and there is always time to get the advice and help from those who tackle short sales on a daily basis.