Short Sales vs. Foreclosures: What’s the Difference?

If you’re a homeowner facing financial hardship, you may be wondering whether a short sale or foreclosure is your best option. Understanding the differences can help you make the right decision for your financial future.

What is a Short Sale?

A short sale happens when a homeowner sells their home for less than the remaining mortgage balance, and the lender agrees to accept the lower amount to avoid foreclosure.

✅ Homeowner remains in control of the sale

✅ Less damage to credit than foreclosure

✅ Possibility of avoiding a deficiency judgment

✅ May allow the homeowner to buy again sooner

However, short sales require lender approval, and they can take longer than a traditional sale (often 3-6 months).

What is Foreclosure?

Foreclosure is when the lender takes legal action to repossess the home after missed mortgage payments. The property is then sold at auction or as a bank-owned (REO) home.

❌ Severe impact on credit (100-160+ point drop)

❌ Stays on credit report for 7 years

❌ Homeowner loses control of the process

❌ Potential eviction after foreclosure sale

Which One is Better?

If possible, a short sale is almost always the better option. It allows homeowners to minimize credit damage, have some control over the process, and potentially qualify for another mortgage sooner. Foreclosure should be the last resort, as it can have lasting financial consequences.

Get Expert Help—Reach Out Today!

If you're facing financial hardship, you don’t have to go through it alone. I specialize in helping homeowners navigate short sales and avoid foreclosure. Let’s discuss your options and create a plan to protect your future.

📞 Call/Text Me: 469-855-0199

📩 Email: Dawn@ElevatedRealtyGroup.net