The Credit HIT on a Short Sale

Real Estate Agent with Cactus Mountain Properties, LLC

ForeclosureWorst 7 years on Credit Report - 4 years recovery FICO drop 200 to 250 points

Deed In Lieu Of ForeclosureBetter 7 years on Credit Report - 3 years for recovery(questionable) FICO drop 150 to 200 points

Short SaleBest 7 years on credit report - 18 months to 2 years recovery FICO drop 100 to 120 points

Although a Short Sale isn't pretty, it's the best option with minimal consequences, even if the seller walks away with no money and/or financing the difference at an affordable payment.

Posted by

Barb Merrill Works 4 U!

Comments (2)

Andrew Trevino
ADT Real Estate - Wilkes Barre, PA
Wilkes-Barre Homes For Sale


I think some of these people in this position don't care any longer. In the old days (like two years ago is so old), anyone with a breath could get a mortgage. It's different now and people need to pay attention to what the damage will really be. Thanks for the post, maybe some people will listen.

Oct 01, 2007 03:57 PM
Sal Poliandro - NJ Bergen County Realtor
RE/MAX Properties - Ridgewood, NJ
Broker Associate


   Great post. Short sales are the best option to dispose of a piece of real estate. You can repair 100-120 pts in a couple of years.

Oct 01, 2007 04:36 PM

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