What happens to the seller’s credit rating when they short sell their property?
Typically the loan will show up as “paid” on their credit report; however there will be a notation that says “settled for less than originally owed” or something along these lines. It is more favorable for a homeowner to short sell than to have a foreclosure or bankruptcy on their credit report. A short sale will affect the credit of the seller for 1-2 years where a foreclosure or bankruptcy will affect the seller’s credit for 7-10 years.
Related Questions
- What happens if the taxpayer is in escrow to sell the relinquished property and then decides the want to make it part of a tax-deferred Exchange?
- What happens to the sellers credit rating when they allow an investor to short sell their property?
- What happens to the sellers credit rating when they short sell their property?
