How Does a Short Sale Affect My Credit Score?

Many homeowners we work with have questions about how a short sale may affect their credit score, and how that compares with the implications of allowing your home to go into foreclosure.

A short sale has benefits over foreclosure

Both will lower your credit rating, however there are many benefits to choosing a short sale over foreclosure. With a short sale, you are in control of the sale, not the bank. You may sleep better at night knowing who is buying your home, and you can spare yourself the social stigma of foreclosure.

Every homeowner's situation is different, so we always recommend that you speak with a real estate tax attorney that can advise you on the legal and tax implications for your circumstances. Washington Property Solutions partners with a highly respected real estate tax attorney who can answer any financial questions you may have and help you make the right decision. Call us at 1-866-732-9725 and we can refer you for a consultation.

How your credit score is calculated

FICO® scores are the credit scores most lenders use to determine your credit risk. They affect how much a lender will loan you and what interest rate they will charge. You have three FICO scores, one for each of the three credit bureaus: Experian, TransUnion, and Equifax. Each score is based on information the credit bureau keeps on file about you. As this information changes, your credit scores changes as well. You can find more information about how your FICO score is calculated and contact information for the three credit bureaus.