Short sale

[Johny Utah]

Does anyone know how bad a short sale would be on your credit?

[Zx2guy19]

Wrong info, sorry man! Best of luck. Edited March 27, 2014 by Zx2guy19

[Littleguy]

If I remember correctly, it doesn't do anything to your credit, which is why it is beneficial. Now, if the payments are in default, that's a different story.

 

This is not correct. It will show as the loan has been closed (not forclosed or charged off fully) but it will also show how much you borrowed and how much they accepted in being paid back to close it out. As far as the score it's probably not as bad as a bankruptsy or forclosure but I am sure it will be a pretty big hit.

[AngryBMW]

Does anyone know how bad a short sale would be on your credit?

 

There are a lot of issues to look at and take into account on a short sale and what it does to your credit.

 

Even if you have never had a late payment or missed payment on your mortgage, going through a short sale WILL have a negative impact on your credit score. There is no set algorithm to tell you by how many points it will drop as it looks at the rest of your credit history as well.

 

If you have had late payments or missed payments altogether a short sale will have a much larger impact on your score than if not. A short sale is still better than a foreclosure.

 

There are contributing factors that will help with your short sale. For example, if you had to have a short sale because of a relocation situation with your job or because of a divorce situation it will not have as negative of an impact.

 

Keep in mind also that with mortgage financing, if you show a short sale on your credit history you will have issues getting a new mortgage for 3 years. Having the compensating factors that you can document and verify (like a relocation or divorce) should allow you to purchase again much sooner than without.

 

Why are you looking to short sale? Feel free to PM or email me if you want to go into further detail. Mstock@usavingsbank.com

 

Thanks,

Marc

[AngryBMW]

This is not correct. It will show as the loan has been closed (not forclosed or charged off fully) but it will also show how much you borrowed and how much they accepted in being paid back to close it out. As far as the score it's probably not as bad as a bankruptsy or forclosure but I am sure it will be a pretty big hit.

 

Yup.

-Marc

[Zx2guy19]

Thanks guys. Certainly don't want to spread false information! I just assumed the benefit of the short sale was that it wouldn't mess up your credit.

[Littleguy]

Thanks guys. Certainly don't want to spread false information! I just assumed the benefit of the short sale was that it wouldn't mess up your credit.

 

It's one of those things that's like, "might as well cut off my arm to free myself from this boulder so I don't stay here trapped and starve to death." lol.