Short Sale, Foreclosure and Strategic Default

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Tuesday, July 27, 2010

short sale, foreclosure and credit effects

You can see that the late payments do a lot of damage to people with good credit scores. 
I suggest you find ways to set up your file, so you can position to rebuild your credit as fast as possible after the short sale or foreclosure

How foreclosure impacts your credit score - Apr. 22, 2010
Recently, Fair Isaac, which developed FICO scores, pulled back the curtain a bit, revealing some estimates of point-score declines following mortgage delinquency problems.

Here are the average hit your credit will take:

30 days late: 40 - 110 points

90 days late: 70 - 135 points

Foreclosure, short sale or deed-in-lieu: 85 - 160

Bankruptcy: 130 - 240

To come to these figures, Fair Isaac created two hypothetical consumers, one who starts out with a fair-to-middling score of 680 and the other with a very good one of 780. (FICO scores range from 300 to 850.)


2 comments:

Anne said...

Thanks. These figures are certainly helpful where credit scores are concerned when doing a Short sale instead of just talking about credit scores taking a hit.

John McConnin Short Sale Attorney said...

Thank you for the comment. I thought they were useful for the same reason.