Stacey-Ann's Blog


Short Sales and Their Impact On Your Credit Score. . .


Short Sales and Their Impact On Your Credit Score:

short sales

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



A short sale is the most sensible thing to do if you qualify. . .

short sales maryland

Click on my eBook about Short Sales.. .you will have a clearer vision when you are contemplating a short sale as an option.


Why Should You Call Us If You Are Short Selling Your Home?

Fernando Herboso is a Certified Distressed Property Expert 
Short Sales Maryland

and a Gold Member 
Certified Default Resolution SpecialistTM with (CDRS)

short sales specialist
You can reach me (Fernando Herboso) by calling him directly@  240-426-5754 
or email :

We can serve you in Maryland, DC or Virginia


How Much A Short Sale Cost Me After All?

Short Sales Maryland 










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.


Search Homes for Sale


Donations made to charity with every successful closing!

Dr. Stacey-Ann Baugh

Century 21 New Millennium

240-481-3565 (C)

202-546-0055 (O)




Information deemed reliable but not guaranteed! 




Comment balloon 1 commentDr. Stacey-Ann Baugh • January 26 2010 11:37AM


"How is a Short Sale Seller's Credit Affected? According to David Steep, division manager at Vitek Mortgage, Sacramento sellers, as well as sellers in other states, will take as big a hit on their credit reports by going through foreclosure or giving the lender a deed-in-lieu of foreclosure, providing they are more than 30 days in arrears.

Steep says the points lost on a FICO score are as follows: Foreclosure or Deed-in-Lieu of Foreclosure Both of these solutions affect credit the same. Sellers will take a hit of 200 to 300 points, depending on overall condition of credit. This means if a seller's FICO score before foreclosure was 680, it could dip as low as 380.

Short Sale Streep maintains that the effect of a short sale (providing the sellers are more than 59 days late) on a seller's credit report is identical to that of a foreclosure. The ding on credit will show up as a pre-foreclosure in redemption status, Steep says, which will result in a loss of 200 to 300 points. This means a short sale with a previous FICO of 720 will see it fall from 520 to 420.

Catherine Coy, a mortgage broker in southern California, agrees with Streep. "The effect on a consumer's credit report -- foreclosure vs. short sale -- is the difference between being hit by a train or a bus."

I know we like to appear as experts on all matters, but I don't think any real estate agent should be giving the impression that a short sale might not be so bad. As the mortgage broker Coy said...his by a train or hit by a bus. Seems to indicate neither is good and neither is really better than the other.

Posted by John MacArthur, Licensed Maryland/DC Realtor, Metro DC Homes (Century 21 Redwood) over 8 years ago

This blog does not allow anonymous comments