What impact does a short sale, foreclosure or deed-in-lieu have on your credit score?
FICO, the leading provider of consumer credit scores conducted a study and found:
All in all, we saw:
- The magnitude of FICO® Score impact is highly dependent on the starting score.
- There’s no significant difference in score impact between short sale/deed-in-lieu/settlement and foreclosure.
- While a score may begin to improve sooner, it could take up to 7-10 years to fully recover, assuming all other obligations are paid as agreed.
- In general, the higher starting score, the longer it takes for the score to fully recover.
- Even if there’s minimal difference in score impact between moderate and severe delinquencies, there may be significant difference in time required for the score to fully recover.
Evan M. Rosen
Rosen & Rosen, P.A.
4000 Hollywood Blvd, #725-S
Hollywood, FL 33021