A: It's not like a bankruptcy or foreclosure that stays on one's credit. However, the owner's credit score could be affected by 100 - 150 points because of missed mortgage payments -- there can't be a short sale if the homeowner is not delinquent on his loan. The homeowner has the banks 'ok' to pay back less than what is owed on the home. The banks may report a 'settled for less than full balance' or 'paid in full' to the credit bureaus. Once the short sale is approved, the homeowner will avoid foreclosure, which would have a drastic affect on one's credit for the next 7 to 10 years.
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