How is my credit impacted by a short sale?
Though the individual credit impact of a short sale is difficult to estimate, the contrast between that of a short sale and a foreclosure is clear:
Credit Impact Comparison
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Short Sale
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Foreclosure
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- Credit Score can recover in 2 - 3 years
- Can buy next home in 2 - 3 years
- No permanent mark on credit report
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- Credit Score can recover in 7-10 years
- Can buy next home in 5-10 years
- Permanent poor credit reputation. Individuals are required to disclose foreclosure when applying for some jobs, trying for another loan or applying for credit cards
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