Is A Short Sale Or Foreclosure Worse For Your Credit?
*Broker Kristopher Kent and Renown® Real Estate Services are not financial or legal counsel. The forthcoming information is for entertainment purposes. Readers are advised to seek financial or legal counsel from a certified CPA, accountant, financial planner, or attorney before making any decisions.*
Which is worse for you credit? A short sale or foreclosure?
The FICO analytics blog came out with the differences in credit hits between foreclosure and short sales.
The full post can be read through the link below including data tables for different starting scores but here is a snippet.
All figures are from a credit rating starting at 720 and calculated from that number at each event.
- 30 days late: 70-90 point hit
- 90 days late: additional 90-110 point hit
- Short Sale with deficiency waiver: 95-115 point hit
- Short Sale without deficiency waiver: 130-150 point hit
- Foreclosure: 130-150 point hit
- Bankruptcy: 175-195 point hit
The post also includes the time for a score to fully recover. Starting at a 720 FICO score…
- 30 days late: 2.5 years
- 90 days late: 3 years
- Short Sale with deficiency waived: 7 years
- Short Sale with deficiency: 7 years
- Foreclosure: 7 years
- Bankruptcy: 7-10 years
Link to article here. How do foreclosures and short sale affect your credit?
For more information on buying or selling your home in Reno or Sparks, NV contact Broker Kent at (775) 870-4280 or Kris@Reno-Realty.com
*Broker Kristopher Kent and Renown® Real Estate Services are not financial or legal counsel. The previous information is for entertainment purposes. Readers are advised to seek financial or legal counsel from a certified CPA, accountant, financial planner, or attorney before making any decisions.*
Kristopher Kent, Realtor®
Managing Broker
Phone: 775-870-4280
Fax: 775-870-4281
Kris@Reno-Realty.com