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A Short Sale On My Credit Report: How Many Points Will Drop From My Credit Score?

By Gerald Lucas What impact will a short sale have on your credit score? The correct answer is that it depends. Your credit score is calculated based on a complex formula that tries to figure out the likelihood that you will not pay back your debts. The term ‘short sale’ is unlikely to appear on your credit report. The number of points you’ll lose on your credit score after a short sale will be based on how your mortgage loan was closed and on how that closed account was reported to credit reporting agencies. Normally, a short sale is reported as ‘settled debt’.

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