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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.
Many buyers with a past short sale that come to Zillow have worked on their credit by watching their credit utilization percentage, keeping their balances low, making payments on time and keeping accounts in good standing and have built a qualifying score before 3 years.