How does a short sale affect my ability to get a personal loan in the future?

@marion.bernhard 

A short sale can have an impact on your ability to get a personal loan in the future, but it will depend on several factors. Here are some potential effects:

1. Credit Score: A short sale will likely have a negative impact on your credit score. The exact decrease in score can vary, but it generally ranges from 85 to 160 points. A lower credit score may make it more difficult to qualify for a personal loan in the future.
2. Credit History: The short sale will remain on your credit history for seven years. Lenders considering your loan application in the future may view the short sale as a negative factor, as it suggests difficulties with managing debt and fulfilling financial obligations.
3. Lender's Perspective: Lenders evaluate loan applications based on various factors, including credit history, income, debt-to-income ratio, and other financial aspects. A short sale may raise concerns for lenders, indicating potential financial instability or a higher risk borrower. Consequently, some lenders may be hesitant in extending credit to individuals with a history of short sale.
4. Interest Rates: Even if you are able to secure a personal loan after a short sale, you may face higher interest rates. Lenders might view you as a higher-risk borrower, and as a result, offer loans with higher interest rates to compensate for that risk.

It's important to note that while a short sale can impact your ability to get a personal loan, it is not the only factor considered by lenders. Other aspects such as income, employment history, and overall creditworthiness will also be taken into account. It is advisable to work on rebuilding your credit, managing your finances responsibly, and demonstrating positive financial behavior to improve your chances of getting a personal loan in the future.