The Credit Score Damage

There is no difference in a foreclosure/shortsale or deed-in-lieu, they all affect your credit score, they are considered “not paid as agreed accounts”

The difference in credit score impact observed by real estate professionals and their clients is mainly determined by the history and frequency of delinquencies leading up to the foreclosure, shortsale or deed-in-lieu.

One 30-day delinquency can subtract 60-110 points, and the longer a seller is delinquent the worse damage to their credit score.

A foreclosure can drop a credit score by 150 points or more and will remain on a seller’s record for seven years.  The worst is a bankruptcy, which can drop a credit score by as much as 240 points and remain on file for 7 to 10 years.

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