If you’re considering a selling your home through a short sale, but are concerned about the affect on your FICO score then the following charts should be extremely helpful.
In the first chart we see the affect several actions have on a FICO score in the 680 range and on a score in the 780 range. In the second chart we take a look at how long it takes to recover to your starting score before the short sale, late payments or foreclosure took place.
FICO Score Impact
|
Starting FICO Score |
~680 |
~780 |
|
30 Days late on mortgage |
600-620 |
670-690 |
|
90 Days late on mortgage |
600-620 |
650-670 |
|
Short sale (no deficiency) |
610-630 |
655-675 |
|
Short sale (w/ deficiency) |
575-595 |
620-640 |
|
Foreclosure |
575-595 |
620-640 |
Source: FICO Banking Analytics Blog
FICO Impact Recovery
|
Starting FICO Score |
~680 |
~780 |
|
30 Days late on mortgage |
~9 Mos |
~3 Yrs |
|
90 Days late on mortgage |
~9 Mos |
~7 Yrs |
|
Short sale (no deficiency) |
~3 Yrs |
~7 Yrs |
|
Short sale (w/ deficiency) |
~3 Yrs |
~7 Yrs |
|
Foreclosure |
~3 Yrs |
~7 Yrs |
Source: FICO Banking Analytics Blog
- While a score may begin to improve sooner, it could take up to 7-10 years to fully recover, assuming all other obligations are paid as agreed.
- In general, the higher starting score, the longer it takes for the score to fully recover.
While these charts are helpful guidelines, they are just that – guidelines. Many factors affect an individual’s FICO score and are beyond my expertise (and this blog). If you want more information about credit and your FICO score visit the consumer forums at http://ficoforums.myfico.com/.
Comments(3)