Special offer

Your Credit in a Foreclosure vs. a Short Sale

By
Real Estate Broker/Owner with Equity First Realty VA BKR# 0225058489

Your Credit in a Foreclosure vs. a Short Sale

trueKnow that sellers will take a bigger hit on their credit report by going through foreclosure than going through a Short Sale.

Of course paying you mortgage with a few late payments and modifying your loan is the best course of action, however that topic is for a different blog.
FICO score may sway towards the following:

Foreclosure 
A hit of 200 to 300 points may occur within the 3 different credit bureaus. This means if a seller's FICO score before foreclosure was 720, it could dip lower than 300. The seller has to also consider the initial dings from the lates caused prior to the end of the foreclosure.

Short Sale
The affect of a short sale on a seller's credit report is much less damaging. The ding on credit will show up as setteled less then amount owed, some sort redemption status, or a few other different ways. But the result in the loss is about 60 to 140 points. This means a short sale with a previous FICO of 720 will see it fall to 550 to 600.

Estimated Waiting Period Before Buying Another Home

Foreclosure 
When the seller now becomes a buyer it will take about 60 months before a lender will offer a rate that you may consider. Of course at a purchase price of half of what you may have bought prior to this. But now with the constant daily guideline changes the lending industry is experiencing rates may not be economical for the buyer. Moreover, with the new restrictions of the guidelines the cure time and consequences may be worse.
"The presence of a foreclosure on your credit report probably will make it extremely difficult to obtain new credit at the best rates, especially if you also have problems with other credit accounts. A foreclosure remains on your credit report seven years to 10 yrs, so it will have a long-term effect on our creditworthiness. "Experian - Credit Bureau

Short Sale
The good news for short sale sellers is that the wait is much shorter before buying another home. Short sale will show up on your credit for approx 3 years and you can build your credit with ease. Make sure to keep paying all other debit on time.

We offer free, discreet consultations over the phone, at our office or in your home and there is never any obligation. Contact us today or apply online for more information.

Please take the time to browse through our website and gather the information that you need. If at any time you have further questions about what we can do for you in your situation, you can email or call us at anytime and we will be happy to assist you. Thank you for reaching out to The Marcus Rice Team.

Contact our team today to learn more about your options

Certified Distressed Property Expert

Please contact Marcus for a free consultation and we will work with you to either help you save your home or sell it. WWW.RICHMONDVAHOME.COM for more info or call 804-247-8187

   Finding your Richmond, VA.  dream home has never been easier, use our links to get started.

WWW.RICHMONDVAHOME.COM

WWW.RICHMONDHOMESEARCH.NET

The Marcus & Tonya Rice Team specializes in Richmond, Va, Henrico County, Chesterfield County, Powhatan County, Hanover County, Petersburg, Colonial Heights, and Fort Lee Homes and Real Estate for sale. We are tech savy realtors with over 11 years experience. Please join us on our Social Networking Network to stay up to date on Richmond Virgina real estate news and more...

The Marcus Rice Team can be reached at 804-247-8187 or remaxrice@live.com  

Facebook Marcus Rice Team Fan Page  Twitter Marcus Rice Team  You Tube Marcus Rice Team  Marcus Rice Team Real Estate BlogMarcus Rice Team CDPE SITE

The Marcus Rice Team
RE/MAX Allegiance

 13204 Hull Street Rd. 
Midlothian, VA 23112

Call Marcus at 804-247-8187
Office 804-419-1420

www.richmondvahome.com
email:
remaxrice@live.com
Short Sale Site:
www.VaShortSaleTeam

Certified Distressed Property Expert

RICHMOND VIRGINA SHORT SALES, PETERSBURG VIRGINIA SHORT SALE SPECIALIST, COLONIAL HEIGHTS VIRGINA SHORT SALE SPECIALIST, CHESTER VIRGINIA SHORT SALE SPECIALIST, RICHMOND VIGINIA SHORT SALE SPECIALIST, SUNTRUST SHORT SALE VIRGINIA, HENRICO COUNTY SHORT SALE SPECIALIST, CHESTERFIELD COUNTY SHORT SALE SPECIALIST, VIRGINIA SHORT SALE SPECIALIST, MOSELEY SHORT SALE SPECIALIST, VARINA SHORT SALE SPECIALIST, RICHMOND SHORT SALE SPECIALIST, FAIRFAX COUNTY SHORT SALE SPECIALIST, MIDLOTHIAN SHORT SALES, GLEN ALLEN SHORT SALES, CHESTER SHORT SALES, MIDLOTHIAN SHORT SALE SPECIALIST, BRANDERMILL SHORT SALE, HANOVER COUNTY SHORT SALES, RE/MAX SHORT SALE RICHMOND, WOODLAKE SHORT SALE, SHORT SALE PETERSBURG, STOP MY FORECLOSURE VA, STOP MY VIRGINIA FORECLOSURE, STOP VIRGINIA FORECLOSURE NOW, MIDLOTHIAN SHORT SALE REALTOR

Posted by

Marcus E. Rice - Principal Broker, CDPE

Comments (2)

Mike McCann Nebraska Land Broker
Mike McCann - Broker, Mach1 Realty Farm & Commercial Land Broker-Auctioneer Serving Nebraska - Kearney, NE
Farm & Commercial Property For Sale 308-627-3700

Thanks for the blog info Marcus.  I believe that FICO is one of the biggest ripoff inaccurate industries in the world that operates with little or no oversight and a definite lack of fairness and consistency...Heck...the weatherman is more accurate on his 30 day forecast than most FICO's are...

But I agree the above scenerios will definitely deflate the FICO score because of the way FICO operates....

Jul 24, 2011 04:16 PM
Marcus Rice
Equity First Realty - Richmond, VA
Richmond, NOVA, Virginia Beach Area Realtor/Broker

Mike,

Your right, I wish I owned one of the big three, i would make some changes.

 

Jul 24, 2011 05:05 PM