“How is this going to effect my credit?”Â This may be the most common question we receive.Â While there is no way to provide an exact answer for everyone, industry guidelines and our experience show there are a few things to understand.
1. Short Sale = TemporaryÂ Â Â Â Â Â Â Â Â Â Foreclosure = Forever
2. Long term effects include 2-3 years to buy a home after a short sale as opposed to 5-7 years after a Trustee’s Sale or foreclosure.
3. Short term effects will vary based on the number of missed payments a borrower has with their lender.
According to a 2010 article from CNN Money, based on missed monthly payments or delinquencies, the average homeowner will lose anywhere from 40-160 points.Â Here is the average short term effects to a homeowner’s credit when they miss payments:
30 days late: 40 – 110 points
90 days late: 70 – 135 points
Foreclosure, short sale or deed-in-lieu: 85 – 160
Bankruptcy: 130 – 240
At the Wells Law Group, PLLC and Wells Realty Group, PLLC you have a complete team of real estate attorneys, Realtors, and industry professionals pulling together to see you get the best solution for your situation.Â Call us today for a FREE consultation* or fill out the information on the home page to get your free analysis through our short sale calculator showing you what your home is worth, and how long it will take to break even.