uppercut7141
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personal credit question on short sale
I wanted to know if anyone has some experience and or advise on the following question:
Previous to our marriage, my wife purchased a home and was forced to short sale the home. Although we still need to check her credit later today, it seems like she may have some derogatory information on her credit. How long does a missed payment and or short sale show up on her credit? Is there anything we can do to clear this up? We ran her credit from the Target school and it seems like she has FICO scores in the 730's; however, she's still seen as a risk, as far as credit is concerned.
Previous to our marriage, my wife purchased a home and was forced to short sale the home. Although we still need to check her credit later today, it seems like she may have some derogatory information on her credit. How long does a missed payment and or short sale show up on her credit? Is there anything we can do to clear this up? We ran her credit from the Target school and it seems like she has FICO scores in the 730's; however, she's still seen as a risk, as far as credit is concerned.
Here are 5 steps to recovering your credit score after a short sale.
1. Get your credit report.
2. Cut expenses.
3. Double payments.
4. Pay on time.
5. Keep current credit card accounts open.
5. Is a very good idea. That helps restore your credit as your future reports will show that you kept making payments and were not late. Make it clear that the only blemish on your credit was "the house" and there may have been circumstances beyond your control that were specific to the house and it did not affect other creditors.
http://www.mlrealtyne.com/5-ways-to-repair-your-credit-score-after-a-short-sale/
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When I mentioned that a short sale is better than a foreclosure, here are several reasons though the affect on the credit score will be similar.
A short sale doesn't absolve the borrower from the debt the borrower incurred with the original mortgage, but it can be better than a full-on foreclosure.
10 reasons why a short sale may present a better option than letting your home slide into the long, draining process of foreclosure.
http://home.howstuffworks.com/real-estate/selling-home/10-benefits-of-short-sale-over-foreclosure.htm
1. Get your credit report.
2. Cut expenses.
3. Double payments.
4. Pay on time.
5. Keep current credit card accounts open.
5. Is a very good idea. That helps restore your credit as your future reports will show that you kept making payments and were not late. Make it clear that the only blemish on your credit was "the house" and there may have been circumstances beyond your control that were specific to the house and it did not affect other creditors.
http://www.mlrealtyne.com/5-ways-to-repair-your-credit-score-after-a-short-sale/
--------------------------
When I mentioned that a short sale is better than a foreclosure, here are several reasons though the affect on the credit score will be similar.
A short sale doesn't absolve the borrower from the debt the borrower incurred with the original mortgage, but it can be better than a full-on foreclosure.
10 reasons why a short sale may present a better option than letting your home slide into the long, draining process of foreclosure.
http://home.howstuffworks.com/real-estate/selling-home/10-benefits-of-short-sale-over-foreclosure.htm
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Her score may indeed go down 200-300 points.
Here is an article that explains it and as you see one agent found that the sale only caused the score to go down 100 points.
Better to expect the worse of 200-300 so you will be prepared.
The number of days late on paying the rent is also a factor.
As far as a buyer having to wait x number of years, Fannie Mae is an example where the wait time is 48 months. A foreclosure usually requires more time allowed, so in that one facet a short sale is slightly better.
http://homebuying.about.com/od/4closureshortsales/qt/060907SScredit.htm