Short Sales and Their Impact On Your Credit Score:
Short Sale and the impact on credit Scores
No one can tell you the exact outcome of your credit score since your credit is affected by many variables and add the fact that the FICO score is a constantly evolving process and changes over time.
Understanding also that your credit is also a credit rating composed of three different credit reporting agencies: Equifax, TransUnion and Experian.
How does a short sale affect your credit?
I can begin with comparison to the "Other" alternatives, the foreclosure and a deed in lieu of foreclosure. Based on reports and my experience, a short sale is about 200 points less damaging to your FICO score compared to a foreclosure.
Short sales do not impact your credit scores directly by the actual short sale but the months of late or no payments made on your mortgage leading to the short sale itself.
Of course the less number of late payments, the better your “credit report”…to a certain degree.
A foreclosure will remain on a credit report for about 7 years, while a short sale could only affect you 2 to 3 years
If you or someone you know would like information about buying, selling, or renting a home in Prince George's, Montgomery, Charles, Calvert, Anne Arundel, Howard, and/or Baltimore Counties please contact Dr. Stacey-Ann Baugh of Century 21 New Millennium.
Dr. Stacey-Ann Baugh
Century 21 New Millennium
FINALLY! A DOCTOR WHO MAKES HOUSE-CALLS!
Information deemed reliable but not guaranteed!