How Does A Short Sale Effect My Credit Score?
This is part six of "What Is a Short Sale?
How a short sale effects your credit score depends on what your score was at the time of the Short Sale. In a article by Jeanine Skowronski, "It appears that the higher the score the harder it falls and the longer it takes to recover".
Every person's credit and credit score is different, but the graph's below will give you an idea on how it will impact your FICO scores as well as how long it will take to recover.
As you can see from the graph below: If you have a deficiency balance as a result of a short sale, your credit will be effected the same as if it was a foreclosure. For most people the time to recover can take up to seven years.
Does this mean you have to wait 3-7 years to buy another house? No! Markita Woods, aka The Queen Of Mortgages says, "Yes you can purchase with FHA, if you meet the following qualifications". To see the qualifications go to "Can I buy a home immediately after a short sale?" By Markita Woods with WestStar Mortgage.
Graph's provide by Jeanine Skowronski posted on Mainstreet.com