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Short Sale

If you’re having problems meeting the requirements of your mortgage, you might be considering a short sale.

What Is A Short Sale?

A “short sale” is the sale of a home for less than the amount that the owner owes the mortgage company. Short sales appear on credit reports as “settled” accounts, meaning that the lender received less than the full amount that was originally agreed upon.

How Does a Short Sale Impact Your Credit Score?

Since you didn’t repay the full debt as agreed, a short sale may significantly impact your credit score. Even if your payments were never late, the mortgage will remain on your credit report seven years from the date it was reported settled or paid.

However, if you are already severely delinquent on the mortgage payments, your creditworthiness is probably already badly hurt. Your goal now might be to move on to start rebuilding your credit through positive account management.

The Effect of Delinquencies During a Short Sale

April 24, 2015

Dear Experian, Will it have more of an impact on my credit report if I stop making my mortgage payments and become 90 days or more delinquent during a short...

When Are Short Sales Deleted from Credit Report

February 5, 2014

Dear Experian, How long is a short sale on your credit report? We did a short sale in December 2010, and it is still on our credit report. - SPG

Missing Payments Will Worsen Impact of Mortgage Short Sale

January 15, 2014

Dear Experian, How will it affect my credit score if I short sell my house without missing any mortgage payments versus missing payments prior to the sale? - BSB

Impact of a Short Sale when Mortgage Not Deliquent

September 10, 2013

Dear Experian, With the declining value of property, sellers are caught in the position of having to short sale on properties for which the sellers are not delinquent. How does...

Allowing Late Mortgage Payments for Short Sale

December 19, 2012

Dear Experian, If I'm planning to do a short sale but have not yet gone behind on monthly payments, is there any advantage to not going behind on payments? In...

Compromise Sale of Home Will Hurt Credit

March 14, 2012

Dear Experian, I am active duty military and anticipating a permanent change of station this year. I am considering doing a VA compromise sale on my home in Tucson, as...