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This is the 5th tip of “10 Questions You Should Ask About Florida Short Sales” eBook, which is available as a FREE download.

If you are considering a short sale, the effect of such an occurrence may not be the most pressing issue. It could be that unemployment, curtailment of income and other market forces have already wreaked havoc on your credit score.

Nonetheless, or if you are considering a short sale for more strategic reasons, it is important to understand that a short sale will affect your credit worthiness.

Credit scoring is very complex.

It is therefore impossible to say with any certainty how significant or negative an effect a short sale will have on your credit worthiness. A short sale’s effect on credit will depend on many variables, like where your credit score is when you miss a mortgage payment or how many payments you miss before the short sale closes.

If your credit score is of particular concern to you, you may want to discuss the impact of a short sale with a finance or credit professional. You should discuss the short and long term effects, and you should consider what your credit worthiness is worth to you. Ultimately, you should weigh the value of your credit worthiness to the costs associated with maintaining your mortgage payments or foreclosure.

There is one bit of guidance from the finance industry that may help you in your analysis.

Fannie Mae, Freddie Mac, FHA and VA have guidelines for the eligibility of borrowers for their home loans after events like foreclosure, deed in lieu of foreclosure and short sale. There is even a helpful matrix that compares how each treats borrowers after these events.10 Questions You Should Ask About Florida Short Sales

As you will find, there is little difference between how these financial institutions treat borrowers after foreclosure or short sale. However, the most notable difference is the slightly better grade for potential Fannie Mae borrowers after a short sale.

Click the eBook icon on the right to download it for FREE and visit for more information on short sales and short sale success stories.

If you have any further questions about your credit scores during a short sale, please don’t hesitate to call me at (239) 985-4142 or contact me online.

Best wishes,


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NOT LEGAL ADVICE: This information is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Every effort has been made to assure that this information is up-to-date as of the date of publication. It is not intended to be a full and exhaustive explanation of the law in any area. This information is not intended as legal advice and may not be used as legal advice. It should not be used to replace the advice of your own legal counsel.

Winged Foot Tite, LLC is not associated with the government, and our [short sale orchestration] service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.