Your FICO and a Short Sale




There’s a lot you should know about your FICO score when you’re getting ready to buy a house – like not to cancel any unused credit cards – but that’s another story a mortgage broker should probably write.

This question came up at an office meeting:  How does a short sale effect your FICO?  Well, like a lot of crazy things going on in the market right now, we’re not quite sure.

But here’s a good guess…

Short Sale FICO Damage

If you are involved in a short sale your credit score will take an 80-149 point hit. The exact figure most likely depends on the rest of your credit.

You should be able to purchase a home again in about two years.

I’m very curious to see what’s going to happen to the market and how it will be dealt with when all those folks – millions? – who short sold their house want to get back into the market.

Foreclosure FICO Cut

If your property goes all the way to foreclosure your credit score will see a 150-240 point hit.

Five years seems to be the consensus on the time it’ll take for you to be approved for a home loan.


This info isn’t meant to judge, encourage or discourage any decisions about how to proceed. It’s just more information to consider when making a decision that’s appropriate for you.

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Vicki Moore, Realtor
Alain Pinel Realtors, specializing in San Mateo, CA Real Estate.
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RE/MAX Star Properties
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Redwood Shores, CA 94065

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