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Rebuilding your CREDIT after a Short Sale!

Rebuilding your CREDIT after a Short Sale!

MASSACHUSETTS SHORT SALES CREDIT SCORESWe are very grateful this month to be able to interview Kim Carpentier of Valley Credit Repair and Coaching.  This is the perfect month to interview Kim as it’s the end of the year and many are looking to start rebuilding for next year.  I had the pleasure of speaking to Kim about short sales, credit scores, and rebuilding credit and hope to do a follow-up interview soon!

Valley Credit Repair and Credit Coaching
Lawrence, Massachusetts

Kim helps individuals clean up mistakes on their credit reports. So that the report reflects who they are and what type of credit they have.  He is a coach that teaches them what credit is and what a good credit rating is.  He can meet people face to face or online and he services people nationwide except for the state of Georgia.

Short Sale Mitigation Homeowners we deal with are in financial crisis.  Many are in default.  When a homeowner is doing a short sale, what should they be looking out for?  Many of the homeowners we deal with haven’t paid mortgages in over two years.

Kim – If they haven’t paid in two years, be forewarned your credit will be toast.  Any late payments affect FICO scores.  It’s a major derogatory.  It’s at LEAST 150 points if you’re over 120 days late.  If that mortgage hasn’t been paid in over two years, a short sale will end the recording period.  From two years from when the short sale is recorded, a homeowner can start to rebuild that FICO score.  They should START rebuilding their credit immediately.  If they can get their expenses in line so that their income can start to exceed their expenses, they can jump right back up to a comfortable 700.  We have done it within a year of a short sale. It’s up to the client.

SSMSo let’s say I live in Essex, Massachusetts and I sold my home in a short sale last July.  If I came to you with a 600 credit score, what would you do?

Kim – I would do a complimentary consultation.  Items on a credit report can be challenged if they are incorrectly reported, unverifiable, or on the report too long.  I do that report line item by line item.  We start the dispute process and then we can start coaching.  We also will do a budget list which is especially nice for young people.  When they present themselves the next time for a car or house, there is no reason they cannot build right back up to over 700.

SSM So what is a good credit score?

Kim – 740 is the standard for mortgages.  Some things are higher.  720 is strong enough for a 0% financing in an auto loan.

SSM – I had a short sale homeowner tell me she had 3 different scores from different credit agencies and there was a 100 point difference from one credit agency to the other.  Why would that happen?

Kim – Well the three agencies; Transunion, Equifax, and Experian are three different entities.  Some credit collections companies will only report to one company and not to the others.   When you go for a mortgage they will pull all three and take the middle score.

SSM – I also had a short sale homeowner tell me there were multiple inquiries.  How does that impact the credit score?

Kim – If you are in the higher FICO score range, multiple inquires can hurt.  They can drop your score by 50 points.  It is a javascript:;small percentage of a credit score.  Derogatories hurt if there is nothing else to drag the score down.  Inquiries without that homeowner’s permission should be disputed.  FICO states if you’re looking for credits if you keep pulling reports it will hurt.  You have a 45-day window when you are looking for credit.  So for instance, if you’re buying a car you have 45 days from when the credit score was first pulled before another pull would negatively impact you.  There are 3 types of inquiries that you have a 45-day window on, which is mortgages, car, and education loans.

SSM – How long does it take a homeowner to rebuild their credit after a short sale?

Kim – It depends on how many accounts need to be addressed.  75% of all credit reports are wrong.  They should really look at their credit reports on a timely basis.  It’s important to make sure EVERYTHING is correct, names, addresses, who you work for, etc.

SSM – What if you see a wrong address?

Kim – the addresses come from items being put on your credit report.  So if there is an incorrect address then it’s some item that’s being used in your credit score.

Kim – Credit reports are nothing you sign up for.  Anyone, banks, collections agencies can put anything they want on your credit report.  But when you’re dealing with the kind of info that these agencies are taking in, there are mistakes all over the place.

SSMDo they need permission if they are putting a negative on your report?

Kim – They have to notify you within 30 days of the date it went on your report, except for a collections agency.  A collections agency has to do it in a dunning letter and a dunning letter gives you 30 days and it gives you the right to dispute it.  After the 30 days, they can put it on your credit report. A vendor ie, credit card company can do it immediately.

SSM Do you see credit card companies jump to put a late payment on or will they give you a heads up?

Kim – They try to get in contact with the consumer, but if you’re late, you’re late.  FICO said 4 months about if you are in high 700’s one thirty days late can cost you 100 points.

SSMHow long does it take for them to update a credit report, ie, disputes, lates, payoffs?

Kim – They are constantly updating info.  It’s 24/7.  Sometimes collections companies only report at the end of the month.  Credit card companies only report on statement closing dates but as far as the CRA (credit reporting agency) they post immediately.  FICO scores are dynamic.  When it’s pulled, it analyzes the report at that time and gives you a score.  It’s a reflection of the info that’s on the report on the day and time it’s pulled.

SSMDo you suggest homeowners pull their credit scores once a year?

Kim – No.  My suggestion is to pull it every quarter.  There are a lot of inexpensive consumer sites that will help you.

SSMWill a homeowner pulling their own credit work against them?

Kim – No.

SSMKim thank you so much for talking to us regarding credit scores and how a homeowner can rebuild after a short sale.  Homeowners, PLEASE feel free to post follow up questions, and I will reach out to Kim for a response.


For Realtors, Attorneys, Title companies, etc interested in our services please go to

For homeowners needing assistance with avoiding foreclosure please go to

500 West Cummings Park #2400
Woburn MA 01810

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