Which Is Worse on Credit Score Short Sale or Foreclosure? Ask Sid AARP Bu
Which Is Worse on Credit Score, Short Sale or Foreclosure? - Ask Sid- AARP Bu...
For example, if you start with a score of 720, you'll drop to about 580 either way, and it will take seven years or so to recover to your previous score, assuming you maintain good credit practices going forward. One difference, though: Your score may begin to rebound faster with a short sale than with a foreclosure.
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Which Is Worse a Short Sale or Foreclosure
Impact on credit score is about the same
Q. I'm behind on my mortgage payments. Will the impact on my credit score be less if I unload my home through a short sale rather than going through foreclosure? A. In a short sale, the lender agrees to a sale for less than what's owed on the mortgage. Many people assume that this method of exiting a delinquent loan will do less harm to a credit score than a foreclosure. But score provider FICO says the impact is the same. See also:For example, if you start with a score of 720, you'll drop to about 580 either way, and it will take seven years or so to recover to your previous score, assuming you maintain good credit practices going forward. One difference, though: Your score may begin to rebound faster with a short sale than with a foreclosure.
You may also like: Sid Kirchheimer writes about consumer and health issues. Have a question for Sid Kirchheimer about a new product, a new kind of bank account? Check out the If you don’t find your answer there,
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Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures