Re: Effect of a Short Sale on Sellers Credit - Posted by JT-IN
Posted by JT-IN on July 11, 2002 at 01:25:22:
Yes, the SS is less damaging than a FC.
There should be no further negagtive impact on the Sellers credit from a SS, as the lender is agreeing to take less, as payment in full. This should then show as paid in full; period, but not necessarily as “paid as agreed”.
However, for a borrower to even be eligible to qualify for a SS, they must be able to demonstrate the lack of resources or income to pay any deficit that would exist from a shortage in a selling transaction. Translated, this means that they must be pretty destitute, which usually comes at the expense of being in pretty dire straights overall in financial terms. Normally at this point there have been other unmet obligations, and the commensurate negative impact on ones credit that goes along with this problem.
It seems that you must be comparing from more of hypothetical standpoint, than that of reality… Reality at the point of a SS is “who cares”, as to the financial fallout on the credit rating, in any case that I have seen.