Will Short Sale Hurt My Credit

Will Short Sale Hurt My Credit




Short Sale

Credit Score Damage

(based on agent reports)

250 points or more


150 points or less

(NOTE: credit monitoring

agencies may change policy on score modification)

Mark Against Your

Financial Record

Permanent record at

county courthouse

Drops off credit scoring

system after 7 years

Time to Qualify to Buy Again (*FNMA)

5–7 years

2 years


Down Payment on Future Purchase (*FNMA)

10 percent or greater,

maybe 20 percent


Less than 10 percent


*FNMA (Fannie Mae standards)


You can maintain a high credit score by completing a Short Sale without missing payments on your mortgage and other bills. Please be aware that your lender will still report that a Short Sale was completed.


When a late payment is reported to the three major credit bureaus, it does directly affect your credit. Your bank has the right to report to all of the credit bureaus when you are 30+ days behind on your mortgage payments. After going through a Short Sale or a Foreclosure, most people have multiple late payments reported on their credit report. When a Short Sale is completed, most banks will post to your credit report that your account was “paid in full for less than the full amount.” Your credit report may be also be marked as “settled” or “foreclosure” (if your home goes through foreclosure). Each lender has a different way of reporting that a Short Sale was completed.


Credit experts agree, neither Short Sale nor Foreclosure is favorable to your credit score. However, a Foreclosure is considered much worse than a Short Sale. Please consult with a credit score expert regarding further details on how a Short Sale or Foreclosure may affect your creditworthiness.

What Is A Short Sale? | Will Short Sale Hurt My Credit? | Tax Implications Of Short Sale | Will Bank Approve Short Sale?

If you accept our offer to help you on a short sale, your lender may not agree to a short sale or modification. You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Avoiding foreclosure is important. We recommend that you speak with the appropriate licensed legal or tax advisor before making any decision. 

Contact Information

Photo of The Aguilera Real Estate Team Real Estate
The Aguilera Real Estate Team
Aspire Hometown Realty
24 West 10th Street
Tracy CA 95376
Office: 209-597-8256
Cell: 209-814-8256
Fax: 209-370-8255