{"id":7043249,"date":"2026-08-21T15:43:32","date_gmt":"2026-08-21T15:43:32","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/how-long-does-a-short-sale-stay-on-your-credit-report\/"},"modified":"2026-08-21T15:43:32","modified_gmt":"2026-08-21T15:43:32","slug":"how-long-does-a-short-sale-stay-on-your-credit-report","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=7043249","title":{"rendered":"How Long Does a Short Sale Stay On Your Credit Report?"},"content":{"rendered":"


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How long does a short sale stay on your credit report?<\/h2>\n

It\u2019s pretty cut and dried with foreclosures<\/a>: they stay on your credit report for seven years \u2026 or more. However, it gets a little more complicated with a short sale. As with foreclosures, short sales remain on your credit report for seven years, although it\u2019s not as cut and dried.<\/p>\n

For example, if you were late on your mortgage payments, a short sale will remain on your credit report for seven years from the delinquency date. But if you were never late, the seven-year clock starts on the date it was marked settled or paid.<\/p>\n

Nevertheless, thinking a short sale will have less negative impact on your credit score than a foreclosure is a common credit score myth. Bottom line: there is no way to avoid hurting your credit score with a short sale<\/a>.<\/p>\n

A seller\u2019s credit score can take a hit of <\/span>100 to 150 points<\/span><\/a> after a short sale.<\/span><\/p>\n

In general, the effect of a short sale on your credit score is comparable to the impact a <\/span>foreclosure<\/span><\/a> has on your score. However, the damage to your credit score can vary, depending on how the lender lists the sale. Many times, short sales are recorded as \u201csettlements\u201d instead of \u201cdebt paid.\u201d This is a clue that the lender accepted less than it was owed. That has a negative impact on your credit score.<\/span><\/p>\n

If, on the other hand, the lender reports a short sale as \u201cpaid,\u201d there will be less negative impact on your credit rating. It\u2019s rare and usually only comes as a result of extensive negotiation. It helps if you never missed a payment, if your credit history is otherwise good, and if you provide a hardship letter outlining the extenuating circumstances. The FHA describes extenuating circumstances as \u201ccircumstances that were beyond the control of the borrower, such as a serious illness or death of a wage earner.\u201d<\/p>\n

Any late payments on your mortgage that preceded the short sale will also have a negative effect on your credit, separate from the damage caused by the short sale alone. Keep in mind that a deficiency judgment will appear on your credit report in addition to the short sale, potentially adding to the credit damage.<\/p>\n

How the short sale could appear on report<\/h2>\n

Reading a credit report gets confusing because a short sale probably won\u2019t even be listed as a short sale<\/a>. It\u2019s more likely to be listed as:<\/p>\n