What happens to my credit after a short sale?

After a short sale, your credit will be impacted, but the extent and duration of the impact may vary. Generally, a short sale can lower your credit score by around 100-150 points. However, this impact is typically less severe than a foreclosure or bankruptcy. The credit damage from a short sale may persist on your credit report for up to 7 years. It is important to note that each borrower's credit history is unique, and the exact impact will depend on various factors such as your overall credit profile and how your lender reports the short sale to credit bureaus. Rebuilding your credit can be done through consistent, responsible financial behavior over time. Consulting with a professional credit counselor may also be helpful in understanding and improving your credit after a short sale.