Mark Hilgenberg

As with any financial transaction there are certain credit score implications that come attached. When one gels involved in home ownership or investment property, you hope to build your credit score in the hopes of moving on to bigger and better things in the future. The caveat is if something goes amiss the opposite effect is the result.

• 2 Years vs. 10 Years -
  A homeowner who successfully negotiates and closes a Short Sale will be eligible for a mortgage in as little as 2 years. A homeowner who loses a home to Foreclosure is ineligible for a mortgage for at least 5 years.
  
• 50 vs. 300 -
  For a homeowner who successfully negotiates a Short Sale, only late payments On mortgage will show and after sale, the mortgage will be reported as paid or negotiated. This will lower the credit score as little as 50 points if all other payments are being made. This can affect the score for as brief as 12-18 months. A homeowner show loses a home to Foreclosure, their credit score may be lowered from 250 to over 300 poInts. This typically will affect the score for over 3 years.
  
• Lifetime Yes -
  There are only 2 things that follow you for the rest of your life, a felony conviction and a foreclosure, if you are in a position that requires a security clearance and go through a foreclosure, in almost all cases your clearance will be revoked and your position will be terminated. A short sale does not challenge most security clearances and you’d be able to save your job and credit !