If I do a Short Sale, What Will Happen to my Credit?

This is a very important question for anyone considering a short sale to prevent foreclosure. The effect on your credit can affect you life for many years down the road.

There is no clear answer for this question, because each situation is different. There can be little effect and and there can be a dramatic change in scores from beginning to end. Things that can effect how your credit is changed are: How the bank records the sale; How many late payments did you have, if any; did you fall behind on your HOA and did they place a judgement on you. And that is just the short list.

You may want to consider talking to your tax adviser, your lawyer and your real estate professional before move forward with a short sale.