- August 15, 2013
- Posted by: Joel Firestone (G-Net Consulting)
- Category: News
Did you know…How a short sale affects your credit? Typically the short sale will show up on a credit report as “settled for less than the full balance”. This will have a negative impact on the borrower’s credit score, however it will be less hurtful than if it were to show as “foreclosure.” How much it will actually affect the score will depend on the rest of the borrower’s credit history. It is always best to have an attorney negotiate a short sale with a lender and at the same time have them negotiate how it will appear on the credit report. Some lenders will agree to show the loan as “paid with no late payments” (providing the borrower doesn’t have any late payments) or they may show it as “paid was 30” if there have been some late payments. This would be the optimal outcome for your credit score after a short sale.