How will the Short Sale affect my credit?
Banks have the option of submitting the short sale to the credit bureaus as “Paid in Full” or “Settled for less than full balance”. As far as your credit score is concerned, there is no evidence whatsoever to support that a short sale will lower your credit score. Some have the idea that a short sale is like a bankruptcy or a foreclosure. That’s far from the truth! In a short sale, the lender is simply allowing you to pay less than you owe! The negative credit from a short sale comes from the associated missed mortgage payments.
