How Does A Short Sale Effect My Credit Score?

By
Real Estate Agent with Samson Properties 0225 093857

How Does A Short Sale Effect My Credit Score?

short sale Process

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.

Impact To FICO score

estimated time for FICo score to fully recover

Graph's provide by Jeanine Skowronski posted on Mainstreet.com

Related articles, "What Is a Short Sale" , "4 Qualifications for a Short Sale", "Short Sale Consequences", "Short Sale Process", "The Eight Steps in a Short Sale Process"

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Rainmaker
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

That is a great break down for sellers thinking of a potential short sale

May 17, 2011 12:59 AM #1
Rainmaker
96,748
Susan Jacobs
Samson Properties - Gainesville, VA
Realtor-Helping Buyers/Seller

You know as a agent, we are always getting ask this question over and over. Now all I need to do is send them the link. Have a great day!

May 17, 2011 01:18 AM #2
Ambassador
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Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Susan  I agree with Scott - this information is described thoroughly and easy to read

May 17, 2011 01:39 AM #3
Rainmaker
96,748
Susan Jacobs
Samson Properties - Gainesville, VA
Realtor-Helping Buyers/Seller

Thanks Karen.

May 17, 2011 01:58 AM #4
Rainmaker
144,599
Markita Woods NMLS#196099
Fairway Independent Mortgage - Woodbridge, VA
Queen of Mortgages - FHA, VA, Conventional, USDA

Excellent post Susan. Any sellers thinking of a short sale need to carefully read your series.

May 19, 2011 02:24 AM #5
Rainmaker
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Susan Jacobs
Samson Properties - Gainesville, VA
Realtor-Helping Buyers/Seller

Thanks everyomne. Feel free to repost.

May 19, 2011 03:41 AM #6
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Rainmaker
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Susan Jacobs

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