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Short Sale

If you’re having problems meeting the requirements of your mortgage, you might be considering a short sale.

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What Is a Short Sale?

A short sale is a sale in which a homeowner, or seller, accepts an...

How does a short sale affect credit?

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Allowing Late Mortgage Payments for Short Sale

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What Is A Short Sale?

A “short sale” is the sale of a home for less than the amount that the owner owes the mortgage company. Short sales appear on credit reports as “settled” accounts, meaning that the lender received less than the full amount that was originally agreed upon.

How Does a Short Sale Impact Your Credit Score?

Since you didn’t 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.

However, if you are already severely delinquent on the mortgage payments, your creditworthiness is probably already badly hurt. Your goal now might be to move on to start rebuilding your credit through positive account management.