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What will be the impact of Short Sale on the borrower’s credit score?

April 26, 2017borrower Credit score impact sale short

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What will be the impact of Short Sale on the borrower’s credit score?

1 Answer

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There is no clear answer but it does depend whether or not the borrower is current or is in default. Some lenders may mark the transaction as a settlement, which will hurt the score. However, typically the damage to the score is less significant than the damage as a result of foreclosure or bankruptcy.