The simple answer to this question is yes. However, this question doesn’t really have a simple answer. There are a number of factors that go into a credit score. Just like any other account that you may miss payments on, this will affect your credit score. However, when the sale of your home is complete, your credit score can start to improve because you will not have the missed payments.
The biggest impact on your credit is noticed when we compare a short sale to foreclosure. Under current guidelines, you can requalify for a mortgage in just two years after a short sale. This requalification process takes five to seven years after a foreclosure.
