How does a Short Sale affect your credit score if you are current on your mortgage?

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I am current on my mortgage payments but my job needs me to relocate out of the state. My home value has gone down significantly since I bought it. I was working with a realtor and was informed that a short sale is my best option. How will this affect my credit?

3 Comments
  1. Reply
    Steve D
    July 21, 2011 at 2:31 am

    A short sale will drop your credit score between 150 and 200 points.

  2. Reply
    wg0z
    July 21, 2011 at 3:08 am

    are you SURE you want to accept a transfer that will force a short sale? tell your employer to get creative and keep you whole.

  3. Reply
    DAN DRUFF
    July 21, 2011 at 3:21 am

    if you are current the bank will not do a short sale with you. That is the catch. You have to be behind on your mortgage, further dropping your credit score in order to do a short sale which will drop your score further.

    if you are buying a house in the new state you will have difficulties getting a mortgage if you cant prove you can pay both notes.

    the drop in values has severly impacted the ability of people to simply pick up and move. We are looking at until at least 2011 before we have a shot at turning around. Probably longer.

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