For you experienced short sale investors that care about what happens to the home owners, does shortsale on a home put a charge off on their credit for the difference, if so is this for both primary and investment properties or just one, I have had people that I have talked to say they would rather take a f/c because its ok ofter a certain period of time to still buy a home, were as as ss will lag on credit as a charge off, curious and want to know…
There has been a wide debate and subsequent misunderstanding regarding how much of an impact a shortsale has on an individual’s credit report. A shortsale’s impact is comparable to a late payment or two. But even that pales in comparison to a BK or FC. Late payments do not have as much an adverse effect on credit reports 2 years later whereas the BK or FC could hurt you for 7 years or more. I am not sure about investment properties but for primary residences that is the case. Homeowners are not sure how SS will effect them so you have to tell them that a FC is much worse in most cases.