But don’t you want more information than that? We thought you might, so together with our preferred lender and resident credit expert, Phillip Semlow at Gold Star Mortgage, we have detailed information for you on the credit ramifications of a Short Sale.
We thought it would be best to let you read this "word-for-word"
"It is very challenging to determine the number of "points" a credit score will drop if a short sale or foreclosure occurs. The reason for this is because the credit score is comprised of a history of credit data (other credit accounts, payment history, debt ratios, etc.) that is unique to each individual. However, having closed hundreds of short sales over the years, we are comfortable stating that, on average, we find credit scores dropping 50 to 125 points when a short sale is performed and over 200 points if foreclosure occurs. We also find that most all of our clients’ credit scores return to their pre-short sale levels within 18 months of completing the short sale provided that they are current on all other debt payments.
Rather than estimate the impact to credit score, we instead tend to focus on the length of time it will take for an individual to buy a home again when a short sale or foreclosure occurs. As it currently stands, there is a minimum 2-year hold period from the time a short sale is completed until the time the short seller is permitted to obtain a conventional loan again. This hold period may even be reduced to 1 year in certain situations (must be discussed on a case by case basis). However, if foreclosure occurs, the waiting period extends to a minimum of 5 years and possibly 7 years if several requirements are not met.
Furthermore, upon completion of a short sale, the sale is reported to the credit bureaus as "settled", "paid in full for less", or some variation thereof. Foreclosure is reported as exactly that: "Foreclosure"
Our sincere thanks to Phil for this great information, and as always if you have any mortgage questions please do not hesitate to contact Phillip Semlow atGold Star Mortgage (586) 648-6700 or firstname.lastname@example.org
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Thanks for reading, Rick Giese.
Rick Giese is a real estate associate broker at RE/MAX Advisors.
Phone Toll Free: 1-800-274-5656. email: Rick@RickGiese.com
Rick Giese specializes in loan modification assistance and short sales in the Macomb , Oakland and southern St Clair County Areas of Michigan. Macomb Loan Modification Help, Macomb Short Sale Help. Oakland Short Sale Help Macomb and Oakland County MI our services are offering sellers another option besides pre-foreclosure foreclosure or bankruptcy that can affect their credit for years. We are currently offering our services in the Richmond, Shelby Township, Macomb Township, Chesterfield Township, New Baltimore, Clinton Township, Sterling Heights, Mount Clemens (Mt Clemens) Fraser, Harrison Township, Warren, Roseville, St Clair Shores areas of Macomb County Michigan Madison Heights, Troy, Clawson, Royal Oak, Rochester, Rochester Hills, Berkley, Birmingham areas of Oakland County