Foreclosure v. Short Sale: Will a Short Sale Save Your Credit?
June 14, 2010 by Christe Roknich
Do you know of someone who is in default on their mortgage, or has lost a job and will soon be facing financial difficulties? Where should they turn for advice?
Call us first! And be cautious about internet “experts,” where scams abound and bad advice like this goes unchecked: “oh, just do a short sale without any harm to your credit.” But here’s an excerpt from the Minneapolis Star Tribune, by Kara McGuire, that reveals how foreclosures AND short sales can wreck credit.
“Both short sales and foreclosures are considered negative by the score, because our data shows us it’s very predictive of future credit risk,” said Tom Quinn, Fair Isaac Corp.’s vice president of FICO scores. “The claim that doing a short sale is not going to hurt your score is false. It’s inaccurate.”
Read the entire article on RISMedia.
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