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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.
Even payments 30 to 90 days late will ding your record, but ending your mortgage contract before you've paid it in full is even worse. According to the Fair Isaac Corporation, it doesn't matter if you opt for a deed in lieu of foreclosure or a short sale. They'll both affect your credit about the same.