Hello and Welcome to the Top Orlando Realtors show where we answer questions from consumers about buying and selling residential real estate in Orlando, FL. If you’re a first timer, welcome… and if you’ve been here before, great to have you back. OK this question comes from Allison in the Celebration area. Allison asks….”How will a short sale affect my credit score?” This is a very popular question when someone wants to do a short sale. Having good credit is a big deal for people so it only makes sense that you’d want to protect it. For listeners that don’t know what a short sale is…. a Short sale is when your lender agrees to accept less than the amount owed against the home because there is not enough equity in it to pay all costs of the sale., which means the bank takes a loss. Here are some topics covered in this episode.
How an Orlando Short Sale Can Affect Your Credit
Usually, a homeowner must be in default in order to get approved for a short sale.
It’s much better to have a short sale on your credit than a foreclosure.
Foreclosure can stay o your credit for up to ten years or more.
Having a short sale on your record can usually be removed within two years.