The thought of losing your Atlanta home may seem nauseating, but sometimes a short sale makes a lot of sense.

While your financial life will surely be affected, the recovery of that financial standing could be somewhat easier, depending on your situation.

Your lender may be willing to accept a short sale rather than proceeding with foreclosure action. If this is the case, the impact of the short sale is much less severe than a foreclosure.

Your Credit:

Of course your credit rating will be negatively affected by a short sale, however it is likely the drop in your rating will be much less severe than what it would be in a foreclosure. A drop of as much as 300 points is possible with a foreclosure, whereas one of the benefits of a short sale is that the drop can be as little as 50 points, depending upon the number of missed or late payments you’ve made. Once the sale has been completed, your credit report should reflect that the loan is “paid in full and settled” for approximately 3 years.

Employment:

It may seem unfair, but many companies are requiring credit checks on new hires, and a poor credit rating can impact your ability to get hired, or perhaps even receive a promotion, depending upon the employer’s view of your situation.

This is especially the case if the job you’ll be filling requires you to be entrusted with money and valuables. The thinking behind this kind of policy is, individuals who are financially irresponsible with their own money present a potential embezzlement risk.

If you have a short sale on your credit report, it will show that it was paid, whereas a foreclosure is clearly reflected in the report as such, and you will be viewed as a much higher risk individual.

Faster Rebound:

The qualifications to obtain a Fannie Mae Loan after you’ve been foreclosed is 7 years, however after a short sale you may actually be able to obtain financing in as little as 2 years after the sale, depending on your particular situation.

Despite the difficulties and hardships associated with losing a home, either by short sale or foreclosure, a recent survey conducted by Yahoo Real Estate, revealed that less than half (43%) of the 1500 individuals polled (who were foreclosed upon) stated “their belief in homeownership had suffered as a result”, which obviously means that 57% of foreclosed homeowners still believed in the benefits of owning a home.

When faced with the difficult decision of giving up your Atlanta home, a short sale can help to lessen the blow, allowing you to push the reset button and start again that much sooner.