Profile picture for Kmoore02

How does a short sale vs. a foreclosure effect your credit history differently or does it?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 15 2011 - O Fallon
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (4)

Profile picture for shasta_steve
While Steve is Zillow's resident nut job.  Google Steve.  He is correct that there is not a huge amount of difference between a short sale and a foreclosure, with all other things being equal.   Now how banks handle a short sale and a foreclosure are different and you will most probably end up waiting a little longer for a loan but not a huge amount.  I say all things being equal because if you "strategically default" on a single loan then your credit will only be a little worse than if you short sale the same loan.  Where these huge point drops happen during foreclosure is when people stop paying on many different accounts.  Agents throw out these huge numbers because they either do not know what they are talking about or are intentionally lying.  You take your pick

From personal experience I let a rental forclose a few months ago and my credit over 700 and climbing now.  My friends is around 740 and he did the same a few months before me.  I had one credit card cut my limit but the rest, including American Express, have not said a word.  By the way I think if your credit is otherwise good FHA will allow a new loan after 3 years on a foreclosure and 2 for a short sale, but the lenders would be better able to answer that than me. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 15 2011
That is a lot of double talk.  They are both recorded as debt settled for less than owed and will carry about the same.  You have worse problems than a credit score.  98 per cent of short sales and foreclosures are fraudulent transaction and you are an accessory to that fraud.  Google foreclosure fraud cases and do your own research.  These real estate agents choose to remain in the dark because it justifies them selling bad titles to unsuspecting buyers - then try and claim ignorance.  Wake up!! The burden will ultimately be own your own shoulders.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 15 2011
A short sale will be reported more favorablly on your credit report than a foreclosure, as it will be listed as a paid debt (settled for less than bal. Owed) which is more positive than a straight unpaid foreclosure debt. Hope this helps!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 15 2011
Without a doubt sellers will incur more damage on their credit report by going through foreclosure. Typically your credit score will take plunge between 200 to 300 points. A short sale is a compromise between bank and seller. It shows the owner is trying to correct problem vs walking away from the home.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 15 2011
 
Related Questions
Can you give me advice on how to renegotiate our real estate assessment on our home?
Profile picture for HighDesertAgent
Latest answer by HighDesertAgent
August 14 | 6 answers
is there a list of usda homes available in st charles county? spent hr after hr lookin up addys
Profile picture for John Wyatt
Latest answer by John Wyatt
August 14 | 3 answers
How do I list a price on make me move
Profile picture for Judi Arnold, Kirk Pinson, Diane Baker
Latest answer by Judi Arnold, Kirk Pinson, Diane Baker
March 05 | 2 answers
I have a nice home we're trying to sell. I get plenty of showings and good feedback, however, no of
Profile picture for Robert Adams
Latest answer by Robert Adams
January 10 2013 | 12 answers
(Moved): Can't Change Make Me Move Price
  • Moved by Moderator
  • In Pricing
  • July 03 2012
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 1 Ardennais Rd, Saint Peters, MO Home For Sale
    1 Ardennais Rd, Saint Peters, MO 63376

     For Sale: $198,000

    • Beds: 4
    • Sqft: 1982
    • Baths: 2.5
    • Lot: 15682
  2. 306 Centerfield Dr, O Fallon, MO Home For Sale
    306 Centerfield Dr, O Fallon, MO 63366

     For Sale: $234,900

    • Beds: 5
    • Sqft: 1434
    • Baths: 3.0
    • Lot: 7840
  3. 166 Autumn Chase Dr, O Fallon, MO Home For Sale
    166 Autumn Chase Dr, O Fallon, MO 63366

     For Sale: $149,975

    • Beds: 3
    • Sqft: 1186
    • Baths: 3.0
    • Lot: 5663