Both short sales and foreclosures hit your credit—but not equally. Understanding how each affects your FICO score and loan eligibility can help you plan your recovery timeline after hardship.
Credit Impact Overview
- Short sale: Typically a 100–150 point drop, with recovery possible in two to three years.
- Foreclosure: Often a 150–200 point drop and remains on your report up to seven years.
- Late payments: Multiple delinquencies can do more lasting harm than the short sale itself.
Future Loan Eligibility
- FHA/VA: May allow new mortgage eligibility within two years of short sale (with reestablished credit).
- Conventional: Usually requires four years after short sale, seven after foreclosure.
- Local lenders: Some regional banks in Pinellas offer portfolio options for strong post-hardship borrowers.
Ask about post-short-sale programs: (727) 301-7855 • nikky@capstonerealestate.us
This article provides general information and is not intended as legal advice. Always consult your attorney or financial advisor for your specific situation.