I found this very interesting article on Realtor.com site and wanted to send it out to the Internet. I found this very interesting considering the amount of folks going through the whole foreclosure and short sale process. Everyone is always talking about how these defaults will effect a seller's credit score- however, no one has ever really pinpointed how... So here is the article from Realtor.com. However the ORIGINAL Source is CNN - Les Christie.
Fair Isaac, which developed FICO scores, used a comparison between two people to explain how mortgage delinquencies affect credit scores.
Fair Isaac derived these numbers from a theoretical calculation based on hypothetical borrowers – one with an initial score of 680 and one with an initial score of 780. FICO scores range from 300 to 850.
The hypothetical person behind the 680 score had six credit accounts, while the person with the 780 score had 10. The consumer with the 780 score had no missed payments other than the mortgage; the 680 example had two late payments before they failed to pay the mortgage.
After a mortgage delinquency, the two scores would look like this:
• After 30-day delinquency, 680 score drops to 620 to 640; 780 score declines to 670 to 690.
• After 90-day delinquency, 680 score falls to 595 to 610; 780 score goes to 645 to 665.
• After foreclosure, short sale, or deed-in-lieu, 680 goes to 575 to 595 and 780 drops to 620 to 640.
• After bankruptcy, 680 drops to 530 to 550; 780 declines to 540 to 560.
Meanwhile, the Sedona Real Estate Market continues to be back with a steady spring. May is looking very, very good. Let's hope that June is good as well.
For all your buying and selling needs I can be reached via phone at 928-301-0669, on the web at www.barbarabaker.com, on Facebook at Barbara Hooyman Baker.