What exactly happens to your FICO score if you negotiate and follow through with a short sale? How is your credit affected? How long does the ding stay on your credit report? How long before you bring your credit back to life? And finally, can you compare this to what happens if you just let the home go into foreclosure? Who knows the answer to this?
During this past year I have sat with way too many clients who simply can no longer pay their mortgages, for whatever reason, be it the initial loan, market conditions affecting their ability to refinance, job loss, divorce, etc. In all these cases I am asked to provide information to the client about how consumating a short sale might be different from a foreclosure, and in just about every one of these meetings I know the client doesn’t have the slightest inkling of exactly how each of these will affect their long-term credit standing.
Could I get any of our Battleback lenders to pitch in with an assessment of each scenario? You see, I noted that Teri Lussier had posted at some point a request that we make our effort here as informational as possible. Surely, I thought, we should be able to offer at least information, if not advice, on which tact might be best suited to an individual client. This seems so important to me now.
If you’re a Battleback lender, can you shed some light? Do some reading at my web site about equity sharing to see if you want to post there as well.