Today is
By: Ikedi Ani-okoye
Recently, I have been getting several questions into the effects of a short sale on your credit score. I do hope to preface this through stating everybody's situation is unique and thus generalizing may be over simplifying the situation. When you have always had excellent credit and continue to pay your other accounts (Cars, Credit Cards, pupil Loans, etc.) on time you are believably to see a relatively minor impact on your credit.
One of our recent clients had a short sale approved on their home in March and currently has a 751 beacon score. That is down about 30 points from the 780 they had previously. Understand in this situation the borrower had impeccable credit entering the situation. In this case beneath from Americas Servicing Company (ASC) you can see how the account was reported:
Address:
AMERICAS SERVICING CO
7485 NEW HORIZON WAY
FREDERICK, MD 21703
Address Identification Number:
04xxxxxxx
Status:
Transferred,closed/Paid,Closed.
As for a Foreclosure the damage is much harder.
With a Foreclosure or Deed-in-Lieu of Foreclosure your credit score suffers significantly more than doing a short sale.
Homeowners will take a hit of 300 to 350 points, depending on overall circumstance of credit. This means whenever a seller's FICO score before foreclosure was 680, it could dip as low as 380. In accession it becomes a public record and the judgment remains on your credit report for 10 Years.
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