I am a total newbie to the world of posting on these boards. I am in the process of Short Selling my Town Home. The Bank has approved the sale and has sent me an approval letter that states the following: ( Can anyone help explain what that means in credit impact on my credit report and/or score?). Here is what it says:we will notify the credit bureau to reflect "agreed settlement short of full payment" which will appear on the credit report within 60-90 days from the sale date. They also stated they would waive any deficiency rights. Any help would be appreciated.
A short sale will damage your credit score just as much as a foreclosure. Like they said in the letter, it's reported as an account settled for less than owed, and it can also remain on your credit reports for up to 7 years. I can't tell you exactly how many points you'll lose, but expect to lose a lot.
