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A short sale will have a detrimental affect on your credit record but not as bad as a foreclosure.

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โˆ™ 2011-08-19 02:48:45
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Q: What happens to your credit on a short sale?
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Related questions

Is it better to short sale a house or refinance to get credit in good standing?

It's better to refinance. A short sale will reflect negatively on your credit record.It's better to refinance. A short sale will reflect negatively on your credit record.It's better to refinance. A short sale will reflect negatively on your credit record.It's better to refinance. A short sale will reflect negatively on your credit record.


How will a short sale effect your credit score?

A short sale will effect your credit score in a negative way. Your credit score will stay on your credit report for some years.


How long will you credit be messed up if you are doing short sale?

A short sale is an option when a property owner is not able to afford the obligations of a loan. The amount of time a short sale is on a credit report can be answered by a lawyer who is assisting in the short sale. A short sale may hinder future loans.


How long does a short sale stay on your credit?

10years...


Is a short sale better than foreclosure?

In most cases it is preferable to foreclosure. I disagree. A short Sale has less impact on your credit score than a foreclosure.


Can you buy home after short sale?

Yes you can buy a home after shortsale, remember your credit with be ok for the simple fact it will show you paid your debt of your home by doing a short sale.


Does a short sale affect credit score?

A short sale takes place when a lender accepts less than they are owned on a loan secured by a property in the US. In most cases the borrower was already in default on the loan prior to the agreed short sale. The lender will have already reported the late payments or default and there likely was credit damage. The short sale can be recorded as paid as agreed or various other language. A short sale might show as a negative. Or it will show as the loan being paid off after a number of late payments so the credit file shows an account going bad and then no further activity on that account. A short sale is much better than a foreclosure or bankruptcy filing on one's credit report. Late payments are normally the only real sign of a short sale and late payments have an impact for approximately 12 months before a credit score starts to improve. When dealing with your credit report check it yearly and challenge all items that are not accurate.


What is better a short sale or a foreclosure?

A short sale is always better. I will tell you why very definitively. When you purchase a home on a short sale you are helping a homeowner salvage their credit and dignity and helping them out of a bad situation. You are also preventing a large loss for the bank and getting a great deal for yourself. Everyone wins if it is done correctly. A foreclosure will have a very bad effect on a homeowner's credit and the bank will in most cases take a bigger loss than they would in a short sale. A sellers credit in a short sale will be damaged to a lesser extent than a foreclosure. In most circumstances if you have done a short sale you will not be able to get another loan for two to three years. In a foreclosure it is usually around five years before you can purchase another home.


How does short sell affect credit?

It all depends on how late or how many payments you were late when you start the short sale. In most cases if you get a successful short and your home gets sold it is a lot better than having a foreclosure on your credit report.


How long does a short sale affect your credit?

Iam bout to lose my house soon, getting divorce!. is it recommended to do a short sale? I am concerned about 1099-C taxes I have to pay to IRS and how bad my credit will be if I want to get a cheaper property later on. does enybody know how much afeccts short sales, is it better than a foreclosure! Thanks


How do you repair credit after a short sale?

Your credit score relies most heavily on the most recent 12 months of activity. Therefore, the best strategy will be to continue using credit responsibly and demonstrate a history of credit worthiness.


Is it possible to avoid short sale's negative impact on credit record by continuing short amount payments to lender?

No. The short sale and the credit situation that made it necessary will stay on your credit report for 7 years or the applicable statute of limitations. The debt is extinguished by the short sale, if properly executed, so you would not be entitled to mortgage interest deductions on your tax returns. You would be making gifts to the mortgage company and decreasing your ability to pay other debts. Get some good debt counselling, from a US Trustee-approved debt counseling agency or experienced attorney.

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