Short Sales Paid in Full or As Agreed - Still a deficency balance? Does it hit FICO score?

By
Real Estate Broker/Owner

I've been focusing on helping distressed sellers consider options of short sale versus foreclosure. I need some help from anyone who can answer this question.

Regarding the chart below: If a home is sold as a short sale with a deficiency, and the lender reports the short sale as "paid in full - paid as agreed" or "paid - settled", does the seller then fall into the "no deficiency balance" short sale category, or are they still hit with the deficiency on their credit score?

  

 Thanks to anyone and/or everyone who can provide insight to this question! I'm trying to find the very best way possible to assist distressed homeowners by minimizing their long-term adverse impact.

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