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How Much Do Short Sales Affect Credit? Short Sale Sellers Give Feedback

By Elizabeth Weintraub Sacramento Broker

Real Estate Agent with Elizabeth Anne Weintraub, Broker DRE #00697006

June 24, 2009 02:14 AM

I am excited that About.com has now given me tools that allow reader feedback on my articles at my homebuying website. One of my most popular articles, How Short Sales Affect Credit, now has a Reader Response link. I updated that portion this morning.

If you've been wondering how a short sale may affect your credit, you can read what the pros have to say about it and then look at reader input. I've noted in the article how one of my Sacramento short sale sellers was affected credit-wise after she closed a short sale.

If you'd like to add your two cents to this debate, hop over and answer the question: "How Has a Short Sale Affected Your Credit?"

Elizabeth Weintraub is an author, columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.

The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.

Sacramento Short Sale Agent, Elizabeth Weintraub, has the answers to your Sacramento short sale questions.

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Roy Kelley

Retired - Gaithersburg, MD

Thanks for your post. It is interesting that you require viewers to sign in when they go to the website. Best wishes for continued success.

Jun 24, 2009 02:20 AM

Gary Woltal

Keller Williams Realty - Flower Mound, TX

Assoc. Broker Realtor SFR Dallas Ft. Worth

This is a very common question you have addressed Elizabeth. Anyone that gives advice that says don't worry about what a short sale does to your credit is giving misguided advice.

Jun 24, 2009 02:23 AM

Elizabeth Weintraub Sacramento Broker

Elizabeth Anne Weintraub, Broker - Sacramento, CA

Put 40 years of experience to work for you

Sorry about the sign-in but that's to control spam. You don't have to sign-in to read the article, but to see the responses or post a response you do. Your information is protected, btw.

Jun 24, 2009 02:26 AM

Wanda Kubat-Nerdin - Wanda Can!

Red Rock Real Estate (435) 632-9374 - St. George, UT

St. George Utah Area Residential Sales Agent

Elizabeth, Thanks once again for the educational and informative post regarding Short Sales. I thought this was very interesting: "The good news is a short sale will allow the consumer to obtain an institutional loan for a new home within two years".

Jun 24, 2009 02:49 AM

Scott Engle

Scott Engle - Realty Source, Inc. - San Diego, CA

Realty Source, Inc.

I have heard many sellers say that an agent told them they will have little or NO credit impact. SCARY!!! Every situation is VERY different and the impact can be incredibly different. I urge my agents to avoid giving any credit score advice as a result of a short sale.

Scott @ Realty Source

Jun 24, 2009 02:51 AM

Myrl Jeffcoat

Sacramento, CA

Greater Sacramento Realtor - Retired

Hey Elizabeth - I want you to know I watched that movie you recommended, "Zack and Miri Make a Porno" last night. I must say, it is the most original and funny chick flick and love story I've seen in a long while:-) I honestly know a couple that movie seems to portray. . .Actually, during the 70s I knew a lot of couples like that. . .LOL

Jun 24, 2009 03:42 AM

Elizabeth Weintraub Sacramento Broker

Elizabeth Anne Weintraub, Broker - Sacramento, CA

Put 40 years of experience to work for you

Hi Myrl: I don't think my husband would call it a chick flick. I mean, how can a movie about making a porno movie be a chick flick? LOL. The line I really liked was at the coffee shop when the customer couldn't make us his mind about what he wanted and the clerk cut him off by saying, "too late," and went on to something else. It's the sort of thing that guys who work in coffee shops have probably always wanted to say to a customer. There were a lot of funny lines in that movie.

Jun 24, 2009 10:09 AM

Tammy Lankford,

Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA

Broker GA Lake Sinclair/Eatonton/Milledgeville

I'm off to read the article now. And I'll also be emailing to some folks who are hoping to sell their home via short sale. Friends of mine, not in my market area, but I know they'll want to read it.

Jun 24, 2009 10:37 AM

Melissa Zavala

Broadpoint Properties - Escondido, CA

Broker, Escondido Real Estate, San Diego County

I'm going to read the article now. Thanks for the reference. Also, I would not call "Zack and Miri" a chick flick either.

Jun 24, 2009 12:46 PM

Melissa Zavala

Broadpoint Properties - Escondido, CA

Broker, Escondido Real Estate, San Diego County

I'm going to read the article now. Thanks for the reference. Also, I would not call "Zack and Miri" a chick flick either.

Jun 24, 2009 12:46 PM

Myrl Jeffcoat

Sacramento, CA

Greater Sacramento Realtor - Retired

Elizabeth - I was absolutely soaked in tears from laughter by the end of that movie. I love the drunk guy that came into the coffee shop in the middle of the filming, and was totally oblivious to everything that was going on! Somehow, I looked at my local coffee shop differently this morning:-)

Tell your husband it was ultimately a chick flick because it turned out to be a love story. If he got "tricked" into watching it because of the title, we won't hold it against him, and he can still run with the big dogs. . .LOL

Jun 24, 2009 01:09 PM

Elizabeth Weintraub Sacramento Broker

Elizabeth Anne Weintraub, Broker - Sacramento, CA

Put 40 years of experience to work for you

Well, Myrl, I just asked my husband if he would call Zack and Mira Make a Porno a chick flick, and he said "No, it's kinda raunchy but it has a gooey center."

Hey, look at what I just received from one of my mortgage brokers. It's an email from Flagstar discussing making a new loan to allow a short sale seller immediately buy a new home. It's a little bit different from Fannie Mae's guidelines in that it allows for repayment. Check this out:

The policy we have been working with is if there are no delinquencies, monthly mortgage lates or deficiency, we can make the loan. It may all depend on how the previous shorted mortgage holder reports. If our borrower shorted their previous mortgage and arranged to repay the deficiency through an unsecured note, as long as their payment history is satisfactory and they qualify with the debt, we are O.K. as long as the credit report does not indicate the deficiency as past due or a collection.

Jun 24, 2009 02:00 PM

Terry & Bonnie Westbrook

Westbrook Realty Broker-Owner - Grand Rapids, MI

Westbrook Realty - Grand Rapids Forest Hills MI Re

I've heard so any stories about the effects of a short sale and how your credit may not be as adversely affected it you keep the payment current and work with the lender but I am afraid it is a ploy by the lenders to reduce expense.

Jun 24, 2009 02:53 PM

Myrl Jeffcoat

Sacramento, CA

Greater Sacramento Realtor - Retired

Elizabeth - I think your husband's label is right on:-)

Regarding short-sale sellers and how it effects their credit and/or their ability to purchase again anytime soon, my understanding is much depends on how the mortgage company reports that short-sale. I believe it is vitally important for short-sale sellers to attempt to negotiate the reporting terms as part of the sale. It can make a world of difference when they try to move on in their lives.

Jun 24, 2009 04:04 PM

Liz Moras Migic

Chilliwack, BC

Chilliwack, British Columbia - Realtor

Its also a book series - have you read it? :-) Pass the envelope..........love it!

Jun 25, 2009 04:23 AM