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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 do Short Sales Work. A short sale occurs when a lender agrees to accept less than the full balance of the amount owed in order to release their lien on real property.Short sales have become a popular solution for homeowners who wish to sell their property but owe their lender(s) more than their home is worth.ow do Short Sales Work. A short sale occurs when a lender agrees to accept less than the full balance of the amount owed in order to release their lien on real property.