Short Sales Vs Foreclosures

During the last 12 months, I have been involved in helping some clients who, because of the extenuating economic downturn, have lost value on their homes, so much in fact that they owe more than what their home is worth on today's market. Some of these folks have approached me about the short sale process and have asked me to explain how a permitted short sale is not as damaging to their credit score as a foreclosure. Explaining the difference between the two processes takes a good thirty minutes and is helpful in the decision making process in determining whether to sell their house for less than what it owed, or if the lender is cooperative, trying to negotiate an extended mortgage, lower interest rate, or other concession to keep the customer from loosing their home.