How does a short sale or foreclosure affect me and my credit?

That is the question that many people are asking. Times are statistically tough for many during this recession and people want to know what their options are and what they need to do. Im not a lawyer but this is what I am seeing in the loan world and in the credit arena.

My rule of thumb is always the following when it comes to making payments:

1. Always make your payments and fulfill your obligations.

2. If things are tough and there is no way out, call your lender BEFORE things are bad and before late payments are made. Always call your lender if you are going to be late. This is the same rule with landlords and tenants. The tenants that call the landlord and tell them things