How are short sales reported on credit?
Short sales are reported as a settlement on credit. A
settlement is when a creditor agrees to take less than the full balance owed.
Short sales can be reported to credit in two ways.
1. With a deficiency balance
2. With no deficiency balance
Settlements with deficiency balances drop scores more than those without. These updates to credit can drop a score hundreds of points depending on the score level prior to the update of the short sale on credit. Stay tuned for more info about credit scores and short sales.
1. With a deficiency balance
2. With no deficiency balance
Settlements with deficiency balances drop scores more than those without. These updates to credit can drop a score hundreds of points depending on the score level prior to the update of the short sale on credit. Stay tuned for more info about credit scores and short sales.
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