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How Does a Short Sale Affect My Credit? Will I be able to purchase a home again in the future?

April 26, 2017able affect credit future Home purchase sale short

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How Does a Short Sale Affect My Credit? Will I be able to purchase a home again in the future?

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While a short sale is a negative on your credit report, because of the deficiency (paying less than you owe)- it’s not as bad as a foreclosure. There is life after a short sale. Just continue to pay bills on time for 1 to 2 years and lenders will begin to look favorably at you again. Note: Even if a lender accepts less than what you owe, the Internal Revenue Service considers the amount forgiven as income. (Consult a tax professional for further explanation).