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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.
You have a VA loan and need to short sale. A short sale is a far more appealing outcome for an underwater seller than a foreclosure. A short sale is beneficial because the sale will appear on the buyerâs credit report as a settlement, whereas a foreclosure will remain on their credit report for seven years.