Foreclosure Resources

Credit Consequences After a Greater Mansfield, CT Short Sale or Foreclosure

Mansfield CT Area

The Credit Consequences of Foreclosures and Short Sales

In today’s economy, foreclosures and short sales have become increasingly common on the Connecticut real estate market.

Although it’s an unfortunate occurrence, it happens a lot more than you think. That’s why we at  Home Selling Team have put together numerous resources to help home owners understand each of these processes.

Continue reading to learn about how foreclosures and short sales can affect your credit score.

How CT Short Sales Affect Your Credit Score

A short sale occurs when homeowners sell their home for less than what is still owed on the mortgage.

Typically, homeowners who complete a short sale lose between 50 and 100 points on their credit score.

That’s because only the mortgage late payments are reported.

Despite the point deduction, home owners can typically buy another home within two years at a fairly good interest rate.

How CT Foreclosure Affects Your Credit

When homeowners foreclose on their property, they typically lose about 300 points on their credit score. And if homeowners foreclose on more than one property, their credit score could drop by 600 points!

What’s more, a foreclosure usually prevents home owners from being able to buy another home with a good interest rate for about 10 years.

And once you foreclose on a house, you have to always list it on any credit applications from here on out.

Avoid Mansfield Area Foreclosures As Much As Possible

As you can see, a foreclosure is much more detrimental to your credit score than a short sale.

For more information on how these two processes compare, contact us at  Home Selling Team.

While you’re at it, be sure to check out some of our other Foreclosure and Short Sale Resources.

How a Greater Mansfield, CT Short Sale and Foreclosure Can Impact Your Life and Your Job

Issue Foreclosure Short Sale
Jobs with security clearance    
Current Employment Implications    

Future Employment Implications

   

Deficiency Judgment

   

Deficiency Judgment Amount

   

 

Future Loan Issues Resulting From a Foreclosure Vs Short Sale

Issue Foreclosure Short Sale
Securing a Primary Residence Fannie Mae Loan  Ineligible for 5 years Eligible after 2 years 
Securing a Non-primary Residence Fannie Mae Loan  Ineligible for investment loan for 7 years  Eligible after 2 years 
Securing a Loan with any other company  Future rates will be affected after answering “yes” on 1003 asking if you have been in a foreclosure  Question about short sale is not asked on a form 
Credit Score  Lowers by 250-300 points, which lasts at least 3 years  Only the late payments are reported. A short sale lowers a credit score 50-100 points and affects may only last 12-18 months. 
Credit History  Stays on your public record for 10 years or more Nothing shows up except that mortgage was taken care of. 

What To Do with Your Greater Mansfield, CT Real Estate Investment?

If you are facing a situation where a short sale or foreclosure is your only option, you need to speak with a local Mansfield lender professional or Home Selling Team short sale/foreclosure experts to determine what steps you need to take. We are able to guide you through the process and determine what is the best course of action. Contact a knowledgeable distressed property professionals, like Home Selling Team. We have a team of distressed real estate experts and we will discuss all your options. Don't delay! Contact us today to start deciding what your choices are before its too late.