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If you allow the investment properties to foreclosure, yes your credit is affected. You will not be able to apply for a mortgage loan (3 year FHA - 7 years conventional). Your credit score will be affect, at lease a 200 point drop.
I've successfully negotiated short sales for investors. I highly suggest you research the area for a short sale specialist.
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For Sale: $69,750
For Sale: $169,900
For Sale: $29,900