Reportedly, there may be no significant difference in FICO credit score impact among
foreclosures, short sales or deeds in lieu of foreclosure. However, this will vary greatly depending on the number of late payments, whether a deficiency is reported, etc. and a short sale tends to be better in these regards. Moreover, a FICO score is not the only consideration when you are comparing foreclosures and short sales because you can qualify for most home loan financing within 2-3 years after a short sale whereas it can be 3-7 years after a foreclosure. In addition, the current standard residential loan application asks whether you have ever had a foreclosure but it does not ask about prior short sales.
Want to learn more? Download our free white paper, Frequently Asked Short Sale Questions. If you would like to arrange a complimentary consultation with an agent who specializes in short sales, email us at concierge@lizmoore.com.
