From the article: Short Sale and Foreclosure Effects on Credit
How has your credit been affected after a short sale? Share your story and personal experience with us to help other short sale sellers. Share Your Credit Score
Short sell better than Foreclosure
- Going through short sell will not be quick and easy but I feel it is worth it. We tried for 4 months to get our first offer approved, it was denied. We then waitied again for 4 months and it was finally aproved. We made no payments for 8 months. It has now been two months and our credit score dropped 100 points. I was unaware that we could make payments while we were in the process. Everytime I talked with Countrywide they said our account was frozen. It was a horriable process dealing with countrywide, but I do feel in the end it was worth it. I guess in 18-24 months I will know if I can buy a house.
- —Guest shortseller
due to medical we had to short sale
- My husband had a knee replacement and could not go back to work which would of made no difference he was consruction. Does this make a difference why we short sale
- —poonorman
differences foreclosure and short sale
- A foreclosure and a short sale have several differences. A foreclosure potentially can damage your credit and gets put on public record; you also should find out if you reside in a deficiency state or not because that will affect this significantly. Alternatively, a short sale will merely show as a tiny stain on your credit and is completely negotiable. these are some of the differences between short sale and foreclosure .
- —Guest sarahva
FHA states I had to wait 3 years
- After reading a lot on the internet my husband and I decided to try to buy a house again after doing a short sale in July 2007. Everywhere I read said 24 months. Even our lender said 24 months. After going through months of searching for a house and numerous offers on homes we finally had an offer accepted. A week before closing the underwriter stated that they could not finalized our loan because we had to wait 3 years due to our short sale. I was deeply heartbroken and angry. My lender lied to me and now I have to wait another 9 months before we can try this all over again.
- —Guest Morris
How a short sale effects the credit
- The biggest effect of a short sale one the credit is all of the late payments. If a person is not late and has a short sale, the effect is around 50 points on their credit. If they are five months late on payments, it will be similar to a foreclosure on their credit. Remember, a foreclosure however has a five year recovery period on the credit, and a short sale can be FULLY recovered from in under two years. I am a Short Sale Specialist and founder of the Short Sale Specialist Network.
- —Guest Short Sale Expert
Credit Scores of my clients
- I have clients that have done a short sale and purchased another home within 15 months. Also, most of my sellers had the 30/60/90 day lates but once it sold started recovering immediately. I think there is a huge difference between FORECLOSURE and a SHORT SALE. You can pay your mortgage while going through a short sale. Call your lender and ask.
- —Guest Lisa
Credit Ruined by SHORT SALE
- I was told by my lender that I would have to be behind in the payments to qualify for short sale. (I was badly injured in a car accident.) When the alloted time had passed I sent in ALL nessary paperwork along with an offer of $212,000. As usual, paperwork mishandled and I had to resend. Less than 2 weeks after the first offer was sent,another offer for $218K was sent. 4 months later Saxon Mortgage accepted the lower offer. (Both offers were "AS IS, CASH.) Then after the sale in March 09. Saxon keeped reporting new late payments to all credit Bureaus, as if the property was not sold. Still fighting all this mess and wondering about my 09 taxes. Why would Saxon take less money for the sale but take millions from the government bail out?
- —Guest J. Robbins
