Colorado Springs Vintage Homes Blog

What are the credit consequences on a short sale?

Part VII in Short Sales Series for Colorado Springs Home Owner’s

Related Previous Posts:

• Colorado Springs Homes, 4 things to know about a short sale – Part I of Short Sales Series
• Avoid Foreclosure, Know Your Options – Part II of Short Sales Series
• Colorado Springs Home Foreclosures – 11 benefits of a short sale – Part III of Short Sales Series
• The final step in the Colorado Foreclosure process – Part IV of Short Sale Series
• How long does it take to do Colorado Springs Short Sale? – Part V in Short Sale Series
• Are there tax ramifications to a Colorado Springs Short Sale – Part VI

Are there any credit consequences to a Short Sale?

As I continue to do more and more Short Sales for home sellers in Colorado, I frequently get asked this question.   It’s a fairly simple answer, as the moment a home owner get 30+ days behind on their mortgage payment, the bank will probably report this information to the credit bureau.   When a late payment is reported; it does have a direct affect on your credit.

It’s also important to note that when the actual Short Sale is completed, many lenders will report that the account was “paid in full for less than the full amount.”  A credit report may also be marked as “settled.”  Each lender has a different way of reporting that a Short Sale was done, but this seems to be the most common language that is seen.  If a home goes to Foreclosure the bank typically reports “Foreclosure” on the credit report.

I’ve done a lot of research to see if I could come up with a specific answer to how much a short sale affects a credit score; and there seems to be a wide disparity on the answers I’ve seen.  Some credit experts say 100 points, some say 300 points.  But the one thing everyone seems to agree on ………… a Short Sale (as well as a foreclosure) will affect your credit.

f you are interested in a short sale, It’s important to  utilize a Colorado Springs Real Estate Agent that specializes in Pre-foreclosures, Foreclosures, and Short Sales; and has a successful and ethical track record.  Call Kathy Torline – Nordstrom, 719-287-1049.  

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Kathy (719-287-1049)   KTorline@msn.com

Tags: Colorado Springs CO homes, colorado springs realty, colorado springs short sales, credit rep, Credit Score, real estate agent colorado springs, real estate colorado springs colorado, short sales colorado

This entry was posted on Sunday, January 4th, 2009 at 7:00 am and is filed under For Sellers, Mortgage and Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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