How Does a Short Sale Affect Your Credit?

This will depend on how far you go behind in your payments.  What the cause of the hardship was. In most cases you can buy another home within 2-4 years.

The credit reporting agencies will in most case report a “paid satisfied” instead of ” paid in full” which to creditors shows a negotiated payoff.  It also shows that you made an effort to solve the problem instead of letting go to foreclosure.  In almost all circumstances it will not affect your credit as badly as a foreclosure.  Also the foreclosure will stay on your credit for longer than a short sale. We also have referrals to credit repair specialists that can minimize the effect to your credit.