How badly will a short sale in Hawaii hurt your credit score?  This is one of the first questions that my Sellers ask me when I counsel them on the sale of their home. 

I assisted one of my sellers from Mililani, Hawaii several months ago on the sale of their VA Short Sale Home and now they are purchasing a short sale in the mainland.  Funny how things happen sometimes! 

When they visited their lender in the mainland to get preapproved for a mortgage, they were pleased to find out that their credit score was 709 even after the short sale in Hawaii.  Prior to the short sale, they think it was around 780 but were not positive.

Below are a few distinct facts about this particular transaction: 

•·         The only thing that showed up on the credit report was a single late payment because that was really all that the Sellers were ever late on.  His mortgage company told him that he needed to be late on a payment in order to qualify for a "deed in lieu of foreclosure" in case he decided to go that route. 

•·         Besides the report of that one late payment,  the only other information that was on their credit report was that the mortgage had been setlled but did not mention it being a short sale or how much it sold for.  

This information is not meant to say that your situation will be exactly the same.  For more precise information, I suggest that you contact your mortgage company and request information about how your short sale will be reported to the credit bureaus.

David Kucic, RA
First Sergeant, USA (Ret)
RE/MAX Honolulu
338 Kamokila Blvd. Suite 206
Kapolei, HI 96707

www.davidkucic.com

mailto: david@davidkucic.com