 TITLE: What Is a Short Sale? CONTENT: How Does a Short Sale Affect Your Credit?\n-----------------------------------------\nPayment history is the most important factor in your credit history, and getting behind on your mortgage payments will have an immediate and severe impact on your credit scores.\nWhile the term \"short sale\" does not appear on your credit report, the tradeline for your mortgage loan will include a \"negotiated settlement\" of your mortgage debt for less than originally owed. Anytime an account is reported that way, it will hurt your credit history and credit scores.\nThis negative item will stay on your credit report for seven years from the original delinquency date of the mortgage. If your payments were never late, the short sale will remain on your credit report seven years from the date it was reported settled or paid.\nIt's also important to note that a short sale will have a greater impact than other types of settled debts. How much it will affect your credit scores will vary based on your overall credit history. The National Foundation for Credit Counseling is a good resource if you want to seek the guidance of an expert who can help you understand all your options. END