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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.
If the short sale was an isolated non-payment incident, it will have a lesser impact on your score than if it was one of many non-payments. (Note that some lenders will allow a short sale even if a borrower hasnât yet missed any payments â a scenario that would likely have the least impact on your credit score.).