What effect will a short sale -vs- a foreclosure have on my credit?

Real Estate Broker/Owner with Maxus Realty Group - Broker 301-246-0001 Broker - Realtor - CEO

What effect will a short sale -vs- a foreclosure have on my credit?
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Foreclosure could remain on your credit for up to seven years while a short sale usually gets reported as a “settled debt” and is significantly less damaging on your credit. 
With a completed short sale, your FICO score will not be as negatively impacted as it would be with a foreclosure, that has been proven over and over again. . and that fact will help you get into a new home much sooner as well.

Herboso & Associates is not a  credit counseling agency, but credit experts in general say that a foreclosure will typically reduce a borrower’s FICO score by 250 to 280 points.
A short sale, on the other hand, will typically only result in an 80 to 100 point hit to the borrower’s credit and a significantly shorter waiting period before buying another home.

Please do not rely on this post or just "Google it" for an answer to such an important question.. .you should contact a credit expert for more information about your specific situation.

We help people do short sales. After a denied loan modification, a short sale could be your best option. .
It is our goal to keep a foreclosure from haunting your credit for years to come.

short sales maryland

Click on my eBook about Short Sales.. .you will have a clearer vision when you are contemplating a short sale as an option.


Why Should You Call Us If You Are Short Selling Your Home?

Fernando Herboso is a Certified Distressed Property Expert 
Short Sales Maryland

and a Gold Member 
Certified Default Resolution SpecialistTM with (CDRS)

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You can reach me (Fernando Herboso) by calling him directly@  240-426-5754 
or email : Fernando@Herboso.com

We can serve you in Maryland, DC or Virginia

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Andrew Monaghan
The Monaghan Group - Glendale, AZ
CRS, GRI, EPro Associate Broker

Thank you for the information, Foreclosure always stays with you as when you fill out a loan application there is the question "have you ever had a foreclosure" you will still have to answer yes to this 30 years down the line.

Feb 01, 2010 02:23 PM #1
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

This is one of the many reasons why a short sale is more often than not a better choice than letting your home go to foreclosure.

Feb 01, 2010 10:54 PM #2
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

I think a short sale is always better for the seller and you have said it right here. Hopefully we can help these folks, I have been selling them owner financing afterwards as well.

Feb 03, 2010 01:03 PM #3
Betsy Schuman Dodek
Washington Fine Properties - Washington DC Area Real Estate - Potomac, MD

This is great information. Thanks Fernando!

Feb 03, 2010 10:55 PM #4
Margaret C. Taylor
Century 21 New Millennium MD - Mechanicsville, MD
St Marys/Calvert/Charles MD Real Estate Agent

Thank you for this information and for letting every one know that no one knows exactly how the numbers will impact them but that a completed short sale is better than a foreclosure.  Margaret C.

Feb 05, 2010 02:54 PM #5
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Fernando Herboso - Broker for Maxus Realty Group

301-246-0001 Serving Maryland, DC and Northern VA
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