I have heard many different responses regarding this topic and want to see if there is anyone out there who has actually seen a credit report with a short sale on it and know by how many points it affects the FICO score?
What shows after a “Short Sale” is just the 30, 60, 90, 120, 150, 180, 210, 240 days late.
The loan reflects “Sold”.
Two years from the point of “Short Sale” the lates come off the record and the credit is clear.
thanks Gold…then why would Bank of America state that it hits you just as hard as a Foreclosure but the positive to doing a SS is that the homeowner can enter the house buying market much sooner than if foreclosed on?
Did you see an actual credit report to see how it was reported?
A short sale is not a foreclosure!
Unless the property is foreclosed on and offered for sale at a trustee sale, no foreclosure occured!
The most that can be recorded on a credit report is late payments, the law is the “Fair Credit Reporting Act”.
The only thing that occured in a short sale is late payments!
what if there aren’t any late payments? I’v negotiated a short sale where homeowner is NOT late and is still current but Litton Loan still agreed to a loss. Hopefully we’ll close third week of april.
Loan sold - Short sale - drops off in two years!!!
thanks Gold…KS is a judicial and redemption state. Homeowner can redeem property up to 90 days after trustee sale. if the house is sold within the redemption period, then is it considered a foreclosure?
Yes, if it went to sherriff sale or trustee sale and was either sold or taken back by lender as an REO, then it is a foreclosure!
While in pre-foreclosure the credit report will reflect the late payments on the mortgage.
When you complete a successful short sale the trade line on the credit report will be moved to a closed trade line but will still reflect that it was a delinquent trade line on your credit report. It will reflect on the credit report as debt settled or paid as agreed. Just like if you settle on a credit card balance.
The credit score affected cannot be calculated exactly because the 3 credit agencies change their formula on how they score credit ratings all the time. Many people say it will have about half the affect as an actual foreclosure.