How does a foreclosure or a short sale show up on the homeowners credit report?
A credit bureau is the only true source of information for determining how a short sale and a foreclosure is going to affect a homeowner’s credit. From our experience with homeowners, which is not to be taken as any form of legal advice, foreclosures usually show up as “FORECLOSURE” and can stay on a credit report for seven years. If a homeowner applies for a new loan or has their credit run, the foreclosure could show up. It is also a common disclosure many employers require on most job applications. A short sale is commonly listed as “SETTLED DEBT”, and can be much less harmful to credit. Please consult a credit bureau for how a short sale and a foreclosure will actually affect a homeowner’s credit.
