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I know of at least 2 people that are waiting on a short sale of their homes (no not me). I know that bankruptcy messes your credit for 10 years & foreclosure for 7 years. My question is this: How does a Short Sale affect a persons credit?

4 Thoughts on Regarding Short Sales?
  1. Reply
    Ryan M
    August 31, 2011 at 9:31 am

    It messes it up pretty good as well, just not as bad and for as long. Generally 3-4 years.

  2. Reply
    Casey Y
    August 31, 2011 at 10:23 am

    Short sale will still hurt your credit, for 7 years just like a foreclosure. However, since the bank doesn’t have to foreclose, its not nearly as bad. If a foreclosure will hurt your credit score by 50%, then a short sale will probably only hurt it by10%.

    Tricky thing with a short sale though, you will probably still owe money on the sold house.

  3. Reply
    Rapture
    August 31, 2011 at 10:55 am

    A foreclosure can reduce a score by 100 points.
    The impact of a short sale is less.
    http://www.bills.com/effect-of-short-sale-on-credit-score/
    ^^^ Go to the paragraph labeled Credit Scores and Short sales

  4. Reply
    janis
    August 31, 2011 at 11:39 am

    It’s not the actual Short Sale that affects your credit, it’s your actions leading to the necessity for a Short Sale. Generally, you can get anyone to speak with a negotiator unless you are at least two months behind. Of course, the first thing the banks asks for, beside the Authorization to Participate, will be a hardship letter. No hardship, no short sale. In general, your credit is affected for about 3 years.

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