In my post Credit consequences of the Short Sale we came to a joint conclusion that the FICO score penalty for short sale is 150 points and for foreclosure 300 points. I have just received an email from myFICO stating that there is no difference in the penalty for short sale and foreclosure:
"However, as far as your FICO score in concerned, there is no difference between foreclosures and short sales or deeds-in-lieu of foreclosures."
Is that true? Has it changed in the new FICO algorithm or was it the case all along? Or, possibly, it varies dependent on some other factors? I would appreciate your comments very much.