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How Does a Short Sale Impact Your Credit Score? Since you didnât repay the full debt as agreed, a short sale may significantly impact your credit score. Even if your payments were never late, the mortgage will remain on your credit report seven years from the date it was reported settled or paid.
[How long after short sale can I buy a house?] The time period can be shortened to three years if you can prove extenuating circumstances tied to the foreclosure such as illness or job loss. If so, the new mortgage must be used to purchase a principal residence and will require a minimum 10 percent down payment.