Short Sales, Foreclosures and Your Credit
If you’re in trouble with your mortgage, Lisa Blaylock, a Diamond Certified Coldwell Banker realtor and certified distressed property expert, suggests you look closely at all your options. It’s best to get legal advice before you stop making payments if at all possible.
Ms. Blaylock says homeowners should know the impact that a foreclosure or short sale will have on their credit. A foreclosure will make you ineligible for a Fannie Mae loan for 5 years, your credit score will be lowered anywhere from 250 to over 300 points for 3 years, and recorded on your credit report for 10 years. A short sale allows you to get a Fannie Mae loan after 2 years, your score will go down as little as 50 points, for only 12 to 18 months, and is not reported to credit bureaus. Your attorney can help you decide what your best course of action is, given your circumstances.
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Consumer Advocate
Known as The Savvy Consumer, Chris Bjorklund has been a Consumer Advocate for over 35 years. She has worked with KPIX-TV, KGO, The Better Business Bureau, Consumer Reports, and as an Investigator for the Consumer Fraud Unit of the San Francisco District Attorney's Office. Chris puts her incredible consumer experience to work for you!
