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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.
Short sales and foreclosure have virtually the same affect on credit reports. The severity of its effect on scores depends on the borrower's credit before the short sale. A borrower with excellent credit -- 780 and above -- will suffer a greater hit to his credit score, approximately 160 points, says FICO.