Make a Good Life

What Does a Short Sale or Foreclosure do to your FICO Score (Credit Report)?

Sent around our office today was an interesting article (from bankinganalyticsblog.com) about the impact a short sale or foreclosure can have on someone's credit score and their ability to purchase in the future. Remember when a foreclosure was the kiss of death....resulting in seven to ten years of inability to buy because of the scorch left on the credit report? No more...Today, depending upon the credit score before the hardship, consumers can recover and buy again in as few as THREE years.

 

See the article here. Taking away a message, the better your FICO score to begin with, the worse shape you will be in after a short sale or foreclosure. Just as high-priced home values are down as much as 60%; the bigger they are, the harder they fall. Taken from the article:

-The magnitude of FICO® Score impact is highly dependent on the starting score.

-There's no significant difference in score impact between short sale/deed-in-lieu/settlement and foreclosure.

-While a score may begin to improve sooner, it could take up to 7-10 years to fully recover, assuming all other obligations are paid as agreed.

-In general, the higher starting score, the longer it takes for the score to fully recover.

-Even if there’s minimal difference in score impact between moderate and severe delinquencies, there may be significant difference in time required for the score to fully recover.

 

Presentation on Shoreline Master Program and Planning

What is it? What’s going on now?

I have attended several public meetings and hearings on the upcoming revisionss to the Shoreline Master Plan. According to Karen Valenzuela, County Commissioner, we are six or so months away from its completion. This meeting may be a good opportunity for you to learn what it could mean for you. Especially important information for waterfront property owners to know will be the new bluff setback numbers.

 

Wed., Feb. 8th

7:00 - 8:30 p.m.

Tradition’s Café

300 5th Ave. SW, Downtown Olympia

 

Have you heard something about Shoreline Master Program in the news, but not sure what it is? Then this presentation is for YOU! Across Washington, many local governments are in the process of updating their Shoreline Master Programs, which are local policies and regulations designed to manage human use of marine, stream, and lake shorelines. Learn the background and current information at this free public presentation given by Department of Ecology Staff. This is basic information for people who are wondering what this planning process is and why it is occurring.

 

For more information contact Patricia Pyle at ppyle@ci.olympia.wa.us or 360-570-5841.