Will a Short Sale be Detrimental to my Credit?

Yes, it will. However, foreclosure or bankruptcy will be fatal to your credit score. That’s why most people opt for a short sale.

With a short sale, you may be eligible to purchase a new property after two years but with a foreclosure or bankruptcy, you’ll only be able to buy a new home after 10 years.

So you see that a short sale will be preferable, right?

What’s more, when you work with short sale experts, you may Waterdown the effects to the point that it’s not ever felt.

Here’s what could change

1. How a Short sale is Reported

Credit bureaus will report a short sale as “paid as negotiated” or “paid as agreed”. With this on your credit, it gives a different impression to maybe how bankruptcy or foreclosure will be reported.

2. Cause/Reason

Your credit will report your reason for doing a short sale. It is usually because of unforeseen financial hardship. This is different from when you stop paying your mortgage. It may be considered malicious or mismanaged. This will be very detrimental to your credit score.

3. Deficiency

There are times when a lender will request deficiency and it may affect your credit. Deficiency refers to when a buyer requests the remainder of a loan after a short sale goes through. Therefore you will still have to stress to pay your loan.

However, it is completely avoidable if you work with a short-sale expert. A short sale expert will diligently negotiate a short sale such that it will always suit your interest.

If you need to work with a short sale expert, Bright Horizon has you covered. We are just one click away (link).