Short Sale or Foreclosure?

    Short Sale or Foreclosure?

    Nov 04, 2019

    What is the Difference Between a Short Sale and a Foreclosure?

    A foreclosure is a process by which a lender is able to repossess a property when the borrower defaults on loan payments.

    A pre-closure is the period between when the lender files the Notice of Default and when the foreclosure process is complete. If the home is sold during this period, the transaction is called a short-sale foreclosure (or “short sale” for short).

    While both a short sale and a foreclosure result in the unfortunate event of the borrower not being able to stay in their home, a short sale allows a borrower to avoid the harmful effects that a foreclosure would have on their credit score.