Loan officer: Short sellers will take credit score hit
PHOENIX – With the housing market continuing to recover, homeowners continue to short sell homes.
Loan officer Lisa Brown with Amerifirst said this route will lower the seller’s credit score by 100 to 150 points, but won’t stop them from getting another mortgage.
“The key is to keep your other credit going,” she said. “Stay on time with the car payments and credit cards and over time, in one to three years that credit score will come back up.”
A federal tax break that has allowed some homeowners to avoid a big tax hit on short sales is set to end December 31, but could be extended for one to two more years.