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How does Credit Report Look after a Short Sale?

Posted by James Lockard on January 1, 2010 at 4:39am in Short Sale Discussions
I had a client ask me how his credit report would differ if the bank accepted a short sale as payment in full or if they went after a deficiency judgement. If they go after a deficiency judgement does the balance just show as a outstanding loan? Has anyone come across this? Thanks for the help!

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Tags: credit, deficiency, judgement, report, sale, short
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Replies

  • Patti Lyles January 22, 2012 at 3:35am

    I believe you will find everything is right here at these 2 links:

    1)  http://www.santacruzcountyshortsales.com/our_blog/view/294/credit_a...

    2) http://iwww.santacruzcountyshortsales.com/our_blog/view/293/how_short_sales_and_mortgage_delinquencies_affect__fico_scores

    • Susan B McCarter > Patti Lyles January 22, 2012 at 10:13am

      Thank you Patti for taking the time to share.

    • Robert A. Carrino > Patti Lyles January 22, 2012 at 4:10am

      Great Data on the links Patti!!  Thanks for sharing.

    • Kimberley Kelly > Patti Lyles January 22, 2012 at 3:46am

      Thanks..good links.

  • Bryant Tutas January 22, 2012 at 2:07am

    xx

  • Emily S. Knell January 29, 2010 at 11:20am
    I recently closed a short sale with Wells Fargo Home Mortgage 1st & Wells Fargo Home Equity Solutions 2nd where the owners had no hardship, were never late on payments. They had started with scores in the mid 700's, the wife's went down to 620, we did a rapid rescore & they're both in around 720 right now.

    They're now approved for an FHA loan w/ 3.5% down & we're house hunting!
    • Gayle White > Emily S. Knell January 22, 2012 at 3:24pm

      Please explain rapid rescore!

    • Lillie Handy Dominguez > Emily S. Knell January 17, 2012 at 10:06am

      Emily,

      Thank you for your info.  Were the loans  refinanced?  Did they have to contribute to either the 1st or 2nd-Heloc.?  Was there a deficiency judgement?  What state of this in?  

      We have refinanced with a 1st & 2nd and are way under water.  

      Thank you,

      Lillie

  • Maria Evans January 26, 2010 at 4:56pm
    I read last weekend an excellent paper by Brent T White: Underwater and not walking away: shame, fear and social management of the housing crises. You can check on:
    http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1494467
    I believe that there is a growing "walk away" moviment and we will see more and more people walking away from their homes. Did you see today on Nightly News? The paper has to do with the whole credit score thing.... very interesting.
  • Dominique Van Ryckeghem January 2, 2010 at 3:09pm
    James:

    You definitely want to check the credit report 30 to 60 days after COE to make sure that reporting is as it should be per the approval letter. The Fair Credit Reporting Act (FRCA) allows you to dispute those accounts and have those erroneous items removed from credit.
    I am in the process of doing this for a client.
    Just as an FYI, my clients score went down from 780 to 600 after the short sale.
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