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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.
However, these options are not much better than a foreclosure when it comes to your credit. Much like a foreclosure, a short sale or deed in lieu of foreclosure can result in a credit score drop of 100 points or more.Creditors view these transactions as only marginally better than a foreclosure.emaining current on other debts can help your score. The foreclosure will remain on your credit report for seven years, but its impact on your FICO score decreases over time.