Frequently Asked Questions
How will a short sale affect my credit score?
A short sale itself will minimally affect your credit score, usually around 50 point. Late payments usually have the largest negative impact on your credit score and can average 30 points or more each.
How will a short sale affect my credit history?
There is not a credit reporting item for a short sale. Upon sale, your mortgage company will typically report the short sale as “paid”, “settled in full”, or “paid as Negotiated” on your report.
Will short sales affect future loans?
You typically do not have to declare to future mortgage companies that you previously performed a short sale.
Will it affect my future employment?
After a successful short sale you may be eligible for a Fannie Mae backed loan after only two years on non-primary residences.
Will It Affect Future Fannie Mae Loans?
After a successful short sale you may be eligible for a Fannie Mae backed loan after only two years.
Will It Affect Future Fannie Mae Loan Non-Primary?
After a successful short sale you may be eligible for a Fannie Mae backed loan after only two years on non-primary residences.
Deficiency Judgement
It is typical for the lender to give up the right to pursue a deficiency judgement against the borrower. This is stated in approval letters, and is not legal to collect in many states.
Deficiency Amount
A short sale home is sold at or near market value and in most cases in a greater value than a foreclosure sale which results in a lower deficiency. This deficiency is typically forgiven. This higher selling price helps to cut your lender’s loss.