Since a lot of the homes in the Valley are worth less than what’s owed on them, walking away from the mortgage has become an option for some.

That means your house goes into foreclosure.

The mortgage holder or bank takes it over and sells it for what they can.

A short sale is similar but you have to reach an agreement with the bank to accept less than what is owed.

So which one affects your credit most?

Both will hit your for about 7 years.

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