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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.
Sellers can expect to see their credit scores drop anywhere from 85 to 160 points after process. However, people who opt for a short sale might drop fewer points and have an easier time buying another house in the future. A lot of the impact on a credit score depends on how the bank reports the sale.