Credit Report Consequences of a Short Sale

The consequences of a short sale on your credit report can vary from credit report to credit report depending on your credit profile and past credit history. But, safe to say, a short sale will lower your credit scores and most likely get in the way of you buying a home for several years.

If you are planning on buying a home with a short sale on your credit record using Conventional financing, FHA financing or a VA loan you will have to know what your payment history and credit report says to help determine the length of time you will have to wait to become a home owner again.

In 2010, it is now possible as a short seller to buy a home almost immediately after your sale if you kept your payment current and didn’t have any late payments on any of your other credit accounts. And, if you compare a short sale with a foreclosure, you will have to wait at least 3 years from your foreclosure to think about buying a new home with a mortgage.

As far as your credit report, if all that goes on your credit report is a short sale, then your credit scores will likely go down somewhere near 100 points. But if you couple a late payment or two from other credit accounts on your credit report your scores will likely drop 100-150 points.

If you are a home owner and considering the choice between short sale and foreclosure contact the Mortgage Mediation Group at Thomson Law: Arizona Short Sale Attorney