Short sale question

well if the bank accepted your short sale then you don't owe any money on the house right?

Well did it? were you delinquent before the sale?

well I really don't know how they mark it. I think the worst thing that could happen is marking the account settled for less than full balance. I haven't done this and since most people stop paying for a while. Settled account isn't perfect but it isn't that bad.

Hi KarenLP,

Short sale does affect your credit score negatively. It lowers your score by 75 to 100 points. But need not worry much, as you will be able to get home loan within a year and half. This is not as negative as the foreclosure. A foreclosure affects your credit score more than a short sale.

Could you explain how Aaron? what is the listing on the tradeline?

I am new to this also. How would it not be a negative if the house was sold for less than what was owed and wouldn't someone be responsible for what money the bank was owed after selling the home for less. I am not familiar with short sales but I can not see a bank going without having a debt paid in full.

Acct Status: Closed

Payment Status: Legally paid in full for less than the full balance

Comments: Election of remedy - reported by subscriber

Hi Karen LP and cinnamngrl,

Short sale doesn't affect credit score as much as a foreclosure does. Short sale affects the credit score negatively by 75 to 100 points, while foreclosure lowers the score by at least 250 points.

However it is generally rare for a lender to report the mortgage as paid in full if the whole amount is not paid. It is generally reported as "paid as settled". However if the debtor pays it in full, there can be no negative impact on the credit score.

If your credit score have been negatively affected, there are various ways to improve it. You will have to remain current on your payments. You need to pay off the dues, if any, in order to improve the credit score. Credit history plays the greatest part in maintaining and improving the score. Try to reduce balances on your credit cards. These all, together with patience will improve your credit score. If your credit score will improve, it will be easier for you get a loan.

this situation is unusual as the short sale is the only negative on their credit. Many consumers have late and missed payments before a short sale so I don't have much to go on.