Short Sale in New York City: The Truth about Short Sales and Your Credit Score
One of the key factors to the attractiveness of a Short Sale is the assumption that actually selling your home, even if it’s for less than what you borrowed, won’t cause as much damage on your Credit Score as a Foreclosure. Because this is such a central issue the questions begs to be asked whether or not this is true?
Not to disappoint you but, according to many experts, claims that Short Sales cause only a minor drop in your Credit Rating are simply false. In fact, in certain cases, particularly when your mortgage payments are more than 90 days late, a Short Sale can cause your FICO score to drop by as much as 150 points. This is very similar to the hit it would suffer upon a Foreclosure. [Read more...]