Credit implications

A short sale negotiation resulting in a reduction of the
amount a borrower owes towards a debt acts as a type
of settlement or renegotiation of a borrower's crediter.
Should the creditor report the debt reduction to credit reporting
agencies, it can negative affect a person's debter report.
Despite significant misreporting on the topic,loss to one's credit
due to a short sale is really no different from that of a foreclosure.
[5] After a short sale, debt may find it difficult to obtain a new
mortgage because lender's underwriting guidelines might reject
lending to a borrower who has obtained a short sale in the last.
As of 2011, national and state laws and industry standards for
both real estate sales and lending are in an ongoing and rapid state of change.
Borrowers interested in track a short sale should consult first with a
HUD-approved mortgage counselor for up-to-date and specific
advice as it applies to their situation. Also, borrowers need to get
up-to-date information from multiple professionals, including an
accountant, an laywar, and a real estate broker-all of whom
should be specialized in loss mitigation and should be licensed
to practice in the state where the real estate is located.