How will a foreclosure or Short sale on your Irvine home impact your credit?

by Robert Mack on April 23, 2010

in Irvine Real Estate

I get this question all of the time, and to be honest, I never really know the “real” answer, since the FICO score is such a mystery to everyone.  It’s like the google search engine!  We all go by it and swear by it, but in the end, how do they really come up with the search results???  Most Irvine, Orange County home sellers dealing with this situation always want to know how their credit will be affected if they go through with a short sale or foreclosure, and now they can get an idea!

I came across an article on the CNN Money website and it goes over how different things can negatively affect a persons credit score.  In the article it states that if you are 30 days late, the hit can be anywhere between 40-110 points.  If you are 90 days late, the penalty can be anywhere between 70-135 points.  Foreclosure, short sale or deed-in-lieu is anywhere from 80-160, and bankruptcy can be anywhere from 130-240.

I know your next thought will be, Wow, that’s a big range.  Well the article goes into more detail on different hypothetical scenarios.  Each person can be affected differently and the amount that one is penalized is dependent on their specific situation.

If you have a moment, take a look at the full article, and learn more about the consequences of being late, a short sale, or a foreclosure!

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Post by Robert Mack

Robert has written 724 articles.

{ 2 comments… read them below or add one }

Golf Communities May 3, 2010 at 2:03 am

For those who are experiencing a short sale or foreclosure beginning the repair process means getting a copy of your credit report regularly. You are allowed 1 free copy from all 3 bureaus annually. An important tip I heard was to not get them all at one time. Rather, get 1 every 4 months. For instance get Equifax in January, Experian in May, and Transunion in September. This allows you several looks throughout the year.

short sale of home October 10, 2012 at 2:12 am

That is a very good tip especially to those new to the blogosphere.
Short but very accurate information… Thanks for sharing this one.
A must read post!

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