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How does a settled HELOC affect a credit score?
I did a short sale on my home which included a 1st mortgage and a HELOC. Both are reported as 'settled for less than full amount' on my reports. The 1st shows several months of delinquencies but the HELOC was paid in accordance with terms up until the short sale/settlement. Due to an error by the bank and in reporting, it looks as if the short sale on the first and the associated delinquencies will be removed. However, the HELOC will probably remain as 'settled for less than full amount'. The short sale occurred about 2 years ago.

I'm assuming that I will see a boost in my score with the removal of the short sale on the mortgage, but I still will have to wait about 5 years for the HELOC to fall off. Is this correct?

This might seem like a silly question, but is it still worth it to have the short sale removed. The notation on the HELOC would clue any banker off that I had a short sale, wouldn't it?

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