How will a Short Sale affect my Credit and / or my Security Clearance?
The big key here is to avoid foreclosure. By nearly any measure, a foreclosure is the most damaging event your credit status can encounter – even worse than bankruptcy. In the course of getting your short sale approved you may miss your mortgage payments, and these will show on your credit. By avoiding foreclosure, you will likely be able to resume normal borrowing (car loans, credit cards, consumer goods and such) relatively quickly. Industry standards show the following is typical:
| Issue | Foreclosure | Short Sale |
| Credit Score | Score lowered anywhere from 250 to 300 points. Typically will affect score for over 3 years. | Late mortgage payments will show, but after sale loan will be reported as paid or negotiated. Can lower score as little as 50 points if all other payments are being made. Typically will affect score for 12 to 18 months. |
| Credit History | Foreclosure remains as public record on a person’s credit history for 10 years or more. | Short Sale is not reported on a credit history. The loan itself is typically reported as “paid in full, settled”. |
| Security Clearance | Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance, in almost all cases clearance will be revoked and position terminated. | A Short Sale on its own does not challenge most security clearances. |
The One Best Tip We Can Give You – Don’t Do This Alone
We have heard it all and we’ve helped MANY people in your same situation. We currently have a 99% success rate in managing short sales and we can help you or someone you know as well. Don’t wait for your lender to help or hire an outside national company that will more than likely rip you off! We are LOCAL and we are Certified Home Rescue Experts . Call for more information at 703-400-6757.
