What is the effect of a short sale or deed in lieu on future mortgage eligibility in Oregon?

@dax.schneider 

Both a short sale and a deed in lieu of foreclosure can have a negative impact on future mortgage eligibility in Oregon.

A short sale occurs when a homeowner sells their property for less than what is owed on the mortgage, typically with the lender's approval. This can be seen as a negative event by future lenders, as it may indicate financial hardship or an inability to manage debt. As a result, a borrower who has completed a short sale may be required to wait a certain period of time before being eligible for a new mortgage.

Similarly, a deed in lieu of foreclosure is when a homeowner voluntarily transfers the title of the property back to the lender to avoid foreclosure. This can also be viewed negatively by future lenders, as it signifies an inability to repay the mortgage and could impact the borrower's credit score. Like with a short sale, borrowers who have completed a deed in lieu of foreclosure may be subject to waiting periods before being eligible for a new mortgage.

Ultimately, the impact of a short sale or deed in lieu on future mortgage eligibility will depend on the specific lender's policies and the borrower's overall financial situation. It is important for individuals to consult with a mortgage lender or financial advisor to understand how these events may affect their ability to obtain a new mortgage in the future.