How will a short sale affect your credit if you are not behind on payments and just need to sell for personal?

Asked by Melanie Whitesides, Jacksonville, FL Sat Jul 5, 2008

My husband and I are looking to do a short sale on our house due to the market falling through the floor. We are not behind on payments at all, and have not previously been behind or late. If we do a short sale on the house how will it affect our credit scores?

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Jennifer Bla…, Agent, Owasso, OK
Thu Jun 9, 2011

Who is the lein holder? Some banks have a short sale program and offer a no penalty clause, plus will offer seller upto a certain amount of money towards living expenses after the short sale. You must be willing to help the bank and certain criteria does apply. Contact me at or call (405)625-1576 and I can give you more information.

Jennifer Henning
[p] 405.625.1576
0 votes
Stephen, , Tampa, FL
Sun Jul 13, 2008
The Short Sale process usually begins with the homeowner is behind on payments or will be in the near future. Once the homeowner proves hardship, lenders require a specific set of supporting financial documents to consider a short sale. Contact Short Sale Settlements to find a real estate agent that will help you get started. Time is of the essence!
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Carmen Di Bi…, Agent, Nyack, NY
Sat Jul 12, 2008
Short sales are not taken by banks because markets fall through but because the owners have proven to the bank that they are experiencing hardship, generally through loss of a job or illness. Real estate markets are cyclical. If you are able to pay your mortgage but are looking at a loss in equity know that things will turn around and meanwhile you have a roof over your head. Many who have gone through a short sale or foreclosure do not.
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Debbie Cromer, , Charleston, SC
Sat Jul 12, 2008
You need bank approval to do a short sale unless you are prepared to bring the difference to closing. The bank is not going to take a hit just because you paid more than the home is currently worth. If you are serious about this, you need to contact your lender and explore the possibilities. I know they will need all sort of financial information and will be looking for financial hardship, not just falling market price. Good Luck.
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Pam Winterba…, Agent, Danville, VA
Sat Jul 5, 2008

A short sale will ding your credit score anywhere from 100 - 150 points. Are you folks looking to move or just concerned as values have dropped? If there is not need to move and you can handle your current payments you may just want to ride the market out. A ding in your credit score will effect your renting and future purchasing.
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