boheme wrote:Does anyone know the affect of a Short Sale on ones credit. Since it is a settlement with the lender, will it affect the credit report negatively or not even be reported. I am yet to see a short sale on a credit report, but with the number of people in default, I am curious as to how it would report. Thanks in advance for any insight.I assume you mean settling the debt for less than the amount owed, I would request tha the lender agree to report it Paid instead of settled. If they charge off the rest it is still a charge off and yu may rceive a W9 to claim the difference as income.