Surprising short-sale impacts on credit

The higher the credit score, the longer it may take to fully recover

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DEAR BENNY: What impact will a short sale have on my credit rating? Will it be better for me to let the property go to foreclosure? –Kristine

DEAR KRISTINE: That’s a tough question to answer because, to my knowledge, the various credit rating agencies have different approaches to determining ratings. More significantly, once you start falling behind on your monthly mortgage payments, your credit rating is already falling, so its difficult to separate the bad credit from the impact of a short sale.