What affects my credit score more, a short sale or a foreclosure?

I know both foreclosures and short sales damage your credit score, but how much better is it to sell a house at less than what it is owed on it versus living in it until the bank takes it from you?

Answers...

A foreclosure will have a much larger affect on your credit score. If your credit score is good right now, a short sale will probably knock it down by 80 to 100 points. A foreclosure can end up docking 300 points from your credit score making it almost impossible to get approved for another mortgage.

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