Effects of Mortgage Delinquencies on Ones Credit Score
Found this on money.cnn.com and thought I'd share the highlights. This information helps me answer one of the more frequently asked questions when performing a short sale: "How will a short sale effect my credit score?"
In the past, FICO has been very secretive about this issue, and as such, we in Real Estate have been unable to give direct answers. Well now FICO has finally opened up and revealed a little more about what the effects of a foreclosure or short sale will be on a credit score.
Here are the average hit your credit will take:
30 days late: 40 – 110 points
90 days late: 70 – 135 points
Foreclosure, short sale or deed-in-lieu: 85 – 160
Bankruptcy: 130 – 240
As you can see, this is still a pretty broad range, but three main factors will affect the drop in the credit score: 1- their starting credit score, 2- the number of open accounts, and 3- how long they’ve had credit.
Hopefully this information helps!
Comments (1)
Very good post. Credit impact ranges for various credit occurances have previously been much less defined. Thanks.
Ted Akers, over 14 years ago