Re: Short Sales
10-02-2012 10:05 AM
I am in the Military and I bought a house 7 year ago, I havent been able to sell it and I am completing a short sale. How come my credit took a huge hit like over 200 points. Will my credit recover so hopefully I can get better credit. That is the only negative thing on my credit report and it feels like all the companies look at me like a loser since I cant sell my house and dont want to face a foreclosure.
Sadly, short sales are considered nearly as bad as a foreclosure as far as credit scores go. This may seem pretty harsh but was recently looked at to see if it resulted in overstating consumer risk. Turns out it doesn't. Good chance you don't have the high risk that most short sellers do if you got someone to evaluate your personal circumstances and not just the numbers on a credit report but we really are all just numbers now.
From the horse's orifice:
"In the population we studied, one out of every two borrowers who experienced a short sale went on to default on another account within two years. That is exceptionally high risk."
so my moniker is, well, rather out of date.
WM Discover $800, WF Plat 12k, Chase Freedom Siggy15k, Amex Plat (60k H/B), Citi AA EWMC 25k