30,90 day mortgage late pays, foreclosure / short sales and FICO scores oh my!

Hello all my dedicated followers and blog aholics! FICO, or Fair Isaac Company came out with a recent study that I wanted to pass along to you. It was published in the New York Times last month. I will get right to it, this is good education for a lot of you and I hope answers or prepares you. Keep in mind, when FICO did this study they didn't use a specific lender, it was all done hypothetical. Always consult with your professionals and always make your payments if you can. I never suggest anyone miss payments on purpose. So here we go friends!

Credit scores that are considered MONEY 780. 30 day mortgage late will drop you to 670-690. 90 day mortgage late 650-670. Foreclosure or a short sale with deficiency 620-640.

If your credit isn't perfect, but still pretty money like a 720 here is what happens. 30 day mortgage late, now you're around 630-650. 90 day late mortgage payment you're going to be around 610-630. Foreclosure or a short sale with deficiency 570-590. Getting the picture, well I ain't done yet.

Now let's look if your credit is solid, but a little lower say a FICO of 680. 30 day late mortgage payment will get you to a 600-620. 90 day mortgage late payments 590-610. Foreclosure or a short sale with deficiency 575-595. BUT WAIT THERE'S MORE!

If you get your property sold in a Short Sale, or do a deed in lieu or reach a settlement and the balance is wiped out you could be looking at something like this: 780 would fall to 655-675, 680 FICO now goes to 605-625 and the 680 drops to around 610-630. What is not mentioned in this study about the scores. *I'M ASSUMING THIS IS BASED ON KEEPING ALL YOUR OTHER PAYMENTS CURRENT!!!!*

Lastly my friends out there looking for help or advice, you don't need to default to get a modification done, and you don't always need to default to get a short sale approved. I work with the best Real Estate Agents, and Mortgage Professionals out there. Another awesome resource is www.makinghomeaffordable.gov There are also agencies in or around your town that can help you for free. I hope you all get something out of this and feel a little better. If you need me, I'm always around...

john@redphoenixco.com