You can expect a short sale to knock 100 to 150 points off your credit score. Keep in mind that your credit score is influenced by a number of factors.
Those factors include:
- Your good or bad payment history
- The ratio of your current debt compared to your credit limits
- The seasoning or length of your credit history
- Number of credit inquiries
- Number of credit accounts
- Types of credit accounts
Someone with a good credit score of 780 points might see these kinds of changes:
- 30 days late: 90-110 point drop
- 60 days late: 110-130 point drop
- 90 days late: 105-125 point drop
- Short Sale with no deficiency balance: 140-160 point drop
- Short Sale with Deficiency: 140-160 point drop
A foreclosure will result in about the same change in credit scores. However, a foreclosure will stay on your credit report for 7 years and make it more difficult obtain a loan in the future. Both a short sale and a foreclosure damages your credit score. Yet, most people find it much easier to rebuild their credit after a short sale.
