Report: Short Sales and Your Credit Score

Real Estate Broker/Owner with Rulnick Realty, Inc.

Short Sales Credit score



Curious what will happen to your credit score after a short sale?


The answer is… it depends.  How many mortgage payments did you miss?  How much debt do you have?  What is your outstanding balance to available credit ratio?  What is your overall payment history?  Your “point” impact will be calculated by FICO based on these and several other criteria.  Here is an actual example of how a short sale affected my Destin short sale seller’s credit score.


Property:  Destin short sale condo – investment property (not owner occupied)


Lender:  Aurora Loan Services


Number of Missed Mortgage Payments:  23


Short Sale Reporting:  “Settled for Less Than Full Amount”


Previous Credit Score: 745


“During Short Sale” Credit Score:  646


Credit Score 30 Days After Short Sale: 732 687 and 679 (from the three credit bureaus, Equifax, Transunion and Experian)


My Destin short sale seller was amazed that his credit score seemed to shoot right up after his short sale was complete.  This is not always the case. The bottom line is – you won’t know how your score will change until you complete your short sale.  But don’t be dismayed, you CAN start to rebuild your credit immediately.  And don't be suprised if your financial future is brighter than you think.


It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help. for agents

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Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

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Wendy Rulnick, Broker/Owner Rulnick Realty, Inc.

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Maria Vaill 01/26/2010 11:45 AM
  2. Gabe Sanders 01/26/2010 10:01 PM
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Ray Perry
CENTURY 21 The Neil Company Real Estate - Roseburg, OR
Realtor, CRS, GRI, e-PRO

Everyone seems to be in the same boat.  Hope it's not sinking!  Credit scores play such a huge part of our lives, it's tough sometimes to keep it all good.

Jan 26, 2010 10:55 AM #1
Jean Hanley
Coldwell Banker Kivett Teeters - Hemet, CA
Specializing in Folks Who Want To Buy/Sell Homes

Wow, that is preety amazing, isn't it?  It really does depend on so many factors.  It sounds like the new guidelines that are "promised" in April will make a difference.

Jan 26, 2010 11:01 AM #2
Maria Vaill
ERA Sunrise Realty - Martinez, GA
Martinez GA, Evans GA, Grovetown GA, Fort Gordon G


Do you have other examples?

This would be an interesting piece of info to track with our SHort Sale clients!  I wonder what the trend would be?

Maria Vaill

Jan 26, 2010 11:43 AM #3
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate

It good to see the client's credit going back up. Maybe this client will be able to buy in the near future.

Jan 26, 2010 11:43 AM #4
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX


I've been telling people this for a year now and it still amasses me!


Jan 26, 2010 12:08 PM #5
Stephen Arnold
HomeSmart Elite Group - Scottsdale, AZ

Hey Wendy!! Looks like 'settled for less than owed' is not that bad!! I think that most of our client's will be able to recover from a SS within 2-3 years without a problem!  Thanks for posting!

Jan 26, 2010 12:17 PM #6
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Great topic Wendy. This is one that sellers ask all the time and it is a hard question to answer.

Jan 26, 2010 12:26 PM #7
Ray Wright
Keller Williams Realty - Riverside, CA
- Inland Empire Realtor

Especially with the new help now in place and what seems to be coming in the near future, I think more and more people will realize Short Sales are the way to go!  Thanks for the post!

Jan 26, 2010 02:31 PM #8
Steve Shatsky
Dallas, TX

Hi Wendy... I have seen similar numbers, but I always am certain to remind folks that each case is unique and there are a number of factors that impact credit scores and their fluctuations.  Great news for your client!  :)

Jan 26, 2010 03:12 PM #9
Ricardo Ponce
Ponce & Ponce Realty - San Bernardino, CA
Ponce & Ponce Realty- Ricardo

Well thats great. Every day im learning more and more great information about short sales.

Jan 26, 2010 04:33 PM #10
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Wendy, that's very interesting.  Thanks for posting this, hope you don't mind a re-blog.

Jan 26, 2010 10:01 PM #11
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

We have a united way funded agency that works with clients on credit repair....back to good financial health for our short sale sellers !  A great resource !

Jan 26, 2010 10:06 PM #12
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thanks for sharing this information. Short sale sellers definitely need to consider the impact on their credit. Many already have delinquent mortgage payments and poor credit.

Jan 26, 2010 10:09 PM #13
Laura Giannotta
Keller Williams Realty - Atlantic Shore - Little Egg Harbor, NJ
Your Realtor Down the Shore!

Great information, clients often ask what it will mean to their credit score and to have some actual figures is great.  But as you point out, every situation is going to be different.

Jan 26, 2010 10:45 PM #14
Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

Yours is a most surprising scenario.  None of my "short sellers" have been as fortunate.  Most with decent initial scores have suffered a 100-150 point decline immediately after completing the short sale. 

Jan 27, 2010 12:07 AM #15
David Dee
IRN REALTY - Alhambra, CA
Real Estate - San Gabriel Valley (L.A.) & N. Orange County CA

From the desk of David Dee,

Wendy, this is awesome news! Didn't realize it would be that high based on 23 months of missed payments. That's crazy! :0

Jan 31, 2010 04:02 PM #16
Steve and Jan Bachman
RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax - Herndon, VA
Realtors - Northern Virginia

23 missed free for 2 years...not a bad deal...wish I could

Feb 04, 2010 04:30 AM #17
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