recovering after shortsale

[fisicallyfit]

It will be a year since my shortsale at the end of August. Can I expect my credit score to go up since it has been a year?

[RockrBarbie]

I'm in a similar situation, though my short-sale went through in Oct last year. I don't know for sure, but I'm assuming the late payments leading up to the sale are doing more harm to the score than the short sale itself. If so, I imagine it will take the standard 7yrs for the lates to drop off.  I'm surprised no one has responded to this post yet, with so many foreclosures & SS happening over past few years.

Best of luck!

amy

[llecs]

Like  with COs, CAs, and other major baddies, short sales and foreclosures gradually fade in score damage over time. I wouldn't expect a score increase at one year but there would be some steady increases, most or all won't be noticed. This also assumes you have no future baddies or lates being added. The damage will fade but most of the score impact will remain through the 7 yrs.

[fisicallyfit]

Update --After two years from my short sale my score is 677. This is up from 620 right after the shortsale. I have been able to refinance my primary residence. Hopefully I will see an increase in my score because of the refinance.

[llecs]

Congrats! Thanks for the update.

[shanao621]

Unfortunately short sales are considered just as bad as foreclosures on your credit report because the bank charges off the shortfall. The short sale itself (or foreclosure) is not the date you need to worry about, it's the date of first delinquincy. So in my case that was in July of 2006, that means the date it falls off my report is August 2013. As time passes it's impact lessens, so all you can do is wait it out. As long as you keep your current credit pristine you should be ok, but if you have any baddies show up after the short sale it reestablishes the weighting because it indicates a higher risk. For what I understand the most significant impact on your credit scores happens in the first 2 years, then it's all uphill from there. If it's only been a year I wouldn't expect to see any major improvements for another 12 months.