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How Long Does Bankruptcy, Foreclosure & a Short Sale Stay on a Credit Report?

how long does a short sale stay on my credit

Bankruptcies, foreclosures and short sales negatively affect credit scores for several years.

Time Frames

Generally, foreclosures and short sales stay on a credit report for seven years. By contrast, bankruptcies remain on credit reports for 10 years. The words "short sale" won't actually appear on your credit report. Rather, mortgage lenders report short sales to credit bureaus as being "settled." Regardless, all potential credit grantors consider bankruptcies, foreclosures and "settled" home loans as negative events in your credit life.

Credit Score Reductions

Credit-score reductions vary when comparing a bankruptcy, a foreclosure or a short sale. Unfortunately, if you have a great credit profile and a high credit score before bankruptcy, a huge drop often results. The Fair Isaac Credit Organization (FICO) won't supply an exact credit-score-drop figure after bankruptcy, foreclosure or short

sale. Industry sources say that credit-score reductions after foreclosure and short sales, for example, typically range from 85 points to 300 points.

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