What's better: a foreclosure or a short sale?

Recently talking with a mortgage broker I was given a short but important lesson about the differences between a foreclosure and a short sale. Here are the main points:

• A foreclosure is reported on your credit report as opposed to a short sale.
• A foreclosure will prohibit you from buying again until you pay off any judgements and tax liens reported on your credit report and in a short sale you still have to pay off the tax allocation but it helps build your credit.
• A foreclosure causes a psychological stigma as opposed to a short sale.

Do you have any other differences between a foreclosure and a short sale? Let us know.

Tuesday Links

D.R. Horton's Orders Fall 39 Percent on Mortgage Woes [bloomberg.com]
Bernanke Spots Relief in Markets [wsj.com]
Bonus pay [marketwatch.com]
Using a credit counselor [marketwatch.com]
Crystal City's potential future becomes clearer [washington.bizjournals.com]
See-through condos [baltimoresun.com]
Hispanics vulnerable to predatory lending [baltimoresun.com]
Goodbye subprime, hello FHA [cnnmoney.com]
Do-It-Yourself Builders [nytimes.com]
'Tax' on Interest Deductions Gains Support [washingtonpost.com]

Thursday Links

• Home Foreclosures Doubled in September on Loan Rates (Update1) [bloomberg.com]
• The United States of Subprime [wsj.com]
• Douglas Development trying to bring Whole Foods to Penn Quarter [washington.bizjournals.com]
• Housing market to rebound in 2008, economist says [wichita.bizjournals.com]
• Condo plan splits Bowleys Quarters [baltimoretimes.com]
• Land bank against blight [baltimoretimes.com]
• Mortgage applications up 2.4% [cnnmoney.com]
• Langley Park project highlights immigrant issues [gazette.net]
• Coalition to help avoid foreclosures [miamiherald.com]
• Why Renters Need Insurance [nytimes.com]
• Proper investments needed to help counteract inflation [examiner.com]

DC Luxury Market Update

Presenting the newest luxury listings on the DC block:

• $8,500,000- 3100 Woodland Dr NW, Former embassy that has been meticulously restored over the past 2 years, grand scale rooms for entertaining. Subdivision: Mass Ave Heights
• $8,500,000- 3314 O St NW, One of the grand houses in the Village. Truly one of the grand houses in the Village. Subdivision: Georgetown
• $5,995,000- 2216 Wyoming Ave NW, Masterful renovation, embassy sized entertaining spaces, expansive roof patio. Subdivision: Kalorama
• $5,499,000- 2346 S St NW, Brick and limestone mansion exemplifies the best of Beaux-Arts architexture. Located on Embassy Row. Subdivision: Kalorama
• $4,900,000- 3232 Ellicott St NW, Stately, sunny stone colonial with circular driveway with spectacular garden and pool. Subdivision: Forest Hills.
• $4,100,000- 2801 Tilden St NW, Sited on 1.25 acres with breathtaking views of Rock Creek Park. Subdivision: Forest Hills
• $3,999,000- 2241 Bancroft Pl NW, Classic Georgian offers amazing entertaining spaces, and beautifully landscaped private grounds. Subdivision: Kalorama.
• $3,295,000- 5054 Millwood Ln NW, Rare find! 1/2 acres lot with enchanting, wooded grounds and terraced stone patio. Subdivision: Kent

Pic of the Week

Black Hill Regional Park, Germantown, MD. Pic by D Romero.

Tuesday Links

• Fed members all backed bold rate cut [reuters.com]
• A New Mortgage 'Cop'Targets Wall Street [realestajournal.com]
• Washington-area condo sales drop 50 percent [washington.bizjournals.com]
• FDIC to mortgage servicers: Freeze ARM rates [cnnmoney.com]
• Mortgage slump hits home decor industry [miamiherald.com]
• $6 Million for the Co-op, Then Start to Renovate [nytimes.com]
• Alexandria condos go on auction block [examiner.com]
• Van Metre Homes is Highest in Customer Satisfaction and Design: Gains Top Rankings in Washington, D.C. Market in J.D. Power and Associates Studies [examiner.com]
• The Math Behind Your Home Loan [washingtonpost.com]
• Before There's Smoke, check your insurance policy [washingtonpost.com]
• A Mortgage for Richer or Poorer [washingtonpost.com]
• Denise Richards expands her world [latimes.com]

Friday Links

• Economy adds 110,000 Sept jobs [reuters.com]
• Fed's Kohn: housing, credit woes bode weakness ahead [reuters.com]
• Convert LoansTo Fixed Rates,FDIC Head Says [wsj.com]
• Fight for land near Nats' stadium goes to extra innings [washington.bizjournals.com]
• Financial services firms establish mortgage program in D.C. [washington.bizjournals.com]
• Arena Stage gives Crystal City role of temporary home [washington.bizjournals.com]
• Blacks buying in home slump [baltimoresun.com]
• Quick and dirty tour [baltimoresun.com]
• Mortgage brokers urge fair new rules [baltimoresun.com]
• Steps to take for getting the best deal on a new house [baltimoresun.com]
• A beverly hills star [baltimoresun.com]
• Subprime: Bailout backlash [cnnmoney.com]
• Uncertain future for Bethesda rec centers [gazette.net]
• Project highlights immigrant issues [gazette.net]
• Flipping Slows, but Landlords Continue to Raise Rents [nytimes.com]
• Consumer Confidence Improves in October [examiner.com]
• Help Is Available To Lower The Costs [washingtonpost.com]
• Pr. William Immigration, Housing Ills Seen as Linked [washingtonpost.com]