How bad does a short sale on the mortgage effect your credit?

Any one know how bad a short sale effects your personal credit? I talked with a gentleman who specializes in short sales and says it only effects your credit for about a year and up to 40 points. I have excellent credit, so that doesn't worry me too much. I'm more worried that he is just telling me this to get my business. Thanks!How bad does a short sale on the mortgage effect your credit?
He's just telling you this to get your business. A short sale is going to slam your credit file nearly as bad as a foreclosure will hit it. Furthermore, you may well receive a Form 1099 from the lender at the end of the year for the deficiency amount, and will have to claim that on your income as ordinary taxable income. Use caution before you proceed.How bad does a short sale on the mortgage effect your credit?
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I help people in foreclosure for a living. The first two responses are incorrect. Your credit gets affected in three ways:


1. The mortgage lates will show on your credit report


2. The short sale will show up as a charge off/settled account. It's the same as if you had a $5000 credit card debt and paid them $2500 to call it even and close the account.


3. If this is a judicial foreclosure (or a non-purchase money loan on an investment property in a trust deed foreclosure), and a deficiency judgment was not waived, then the judgment will show on your credit.





That said, it is still better than having a foreclosure on your records and having all three above as well.





As far as the number of points that will be affected, I don't think anyone in the business knows how it would be affected. Maybe you should consult the credit bureaus.





Also, I am not a lawyer, you should consult one for any legal advice pertaining to your particular situation.





Regards...
short sale or foreclosure same thing on your credit report.





once the foreclosure proceedings start....they put an M-9 on your credit report.


40 points ? maybe more like 100 at least...


i seen ppl drop to about 150-200 average.





they will put foreclosure on your credit report...if they havent already.





if there is a deficiency...then they will tag that on you credit report as a collection item (varies with state laws)