Short Sales And How They Affect Your Credit Score And Credit Report

my first short sale

Hello and welcome I’m Fred Weaver, this is Kevin Kauffman and we are Group 46:10. We are one of the nation’s leading short sale teams. Today we want to talk with you about some regularly asked short sale questions that the homeowner might have going into this unfamiliar territory.

One of the most repeatedly asked questions we get in regards to short sales is “How is a short sale going to influence my credit?” There are a couple things that I would like to ensure that we are clear on. First there’s your credit score, the numbering system, your FICO score, for example, and then there’s ‘credit’, which is the words printed on your credit report. They’re two totally different things and I would like to ensure we address them separately.

Your credit score is calculated based on all kinds of several things, the biggest being your payment history, how long you’ve had accounts open and the balances on those accounts. These are the biggest factors to your credit score. We have lots of individuals telling us they’ve heard that doing a short sale will affect your credit score by a specified amount. That is absolutely not true. There is no way to predict how it’s going to affect your credit score. Doing the short sale isn’t what affects your credit; the short sale actually affects your credit report. When you do a short sale, your credit report will actually state “Paid in Full, but less than full amount” or something to that effect. For a majority of individuals, they have to miss payments to do a short sale based on the banks guidelines and regulations. It is those missed payments that actually hurt your credit score, however this is something that can be recovered from relatively quickly. If you have any more questions regarding a short sale and how it would affect your credit report and credit score, please give us a call today.

Short sale FAQs and more.

Get more information on selling your home from Kevin and Fred at My First Short Sale by the Short Sale Specialists of Arizona