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Laurine Will…, Renter in Yonkers, NY

how badly does a short sale hurt your credit?

Asked by Laurine Williams, Yonkers, NY Tue Nov 30, 2010

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8
chase. they are definitely the best bank out there...
0 votes Thank Flag Link Fri Dec 3, 2010
Lebau - I'm sure all of us real estate agents would like to know who this bank is, so that we can have our clients apply for a mortgage from this bank, when they find themselves in this same situation. Thanks in advance for the information.
0 votes Thank Flag Link Thu Dec 2, 2010
dont let agents scare you. its in their best interest that the least amount of foreclosures or short sales hit the market. the truth is i have a friend that short sold, and bought 2 years later (with a different bank) and no problem at all. He explained his situation to the bank, and they gave him credit without much hassle
0 votes Thank Flag Link Thu Dec 2, 2010
I don't know where Lebau is getting his facts from , especially in today's banking/mortgage climate. I just had a potential buyer who sold his property in a short sale transaction two years ago, and up until he sold, had not missed a mortgage payment. The banks he went to would not touch him now that he wanted to buy another house.

I have been told that the number of years for a short sale to come off your credit report is seven, compared to ten years for a foreclosure. What do the mortgage brokers/bankers out there say to this, as they are the more accurate source of information on this.
0 votes Thank Flag Link Thu Dec 2, 2010
Hi, Typically it's 50-100 points off your credit score. You will be able to repair that over time. The other factor to keep in mind is you most likely won't get a decent interest rate for the next few years, when you are able to get a loan.

Sincerely,

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
Legends Realty Group
914.406.9023
0 votes Thank Flag Link Wed Dec 1, 2010
How badly will credit be hurt-- It really depends on how much outstanding debt you have, the length of time that you have had credit, how many other late payments, how did the lender report the short sale, etc., therefore, it's impossible to predict how many points you will lose after a short sale.
0 votes Thank Flag Link Tue Nov 30, 2010
anywhere from 50-150 points. but its not a big deal. credit fixes itself with time. within 2 years your score will be back up to par
0 votes Thank Flag Link Tue Nov 30, 2010
hello. a short sale has an effect of about 150-200 points on your credit. it has less of an effect than a foreclosure.
0 votes Thank Flag Link Tue Nov 30, 2010
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