Short Sale vs. Foreclosure: What’s the Difference?

A short sale is when a homeowner sells their home for less than the balance owed on the mortgage. A foreclosure occurs when a homeowner fails to make mortgage payments and the lender seizes the home.

The main difference between a short sale and foreclosure is that a short sale is voluntary, while a foreclosure is involuntary. A short sale typically happens when a homeowner is struggling to make mortgage payments and wants to avoid foreclosure. A foreclosure happens when a homeowner stops making mortgage payments and the lender seizes the home.

There are some key differences between a short sale and foreclosure that you should be aware of before making a decision about what to do with your home. A short sale will damage your credit score, but not as much as a foreclosure will. A foreclosure will stay on your credit report for seven years, while a short sale will stay on your credit report for three years.

The Law Offices of Omar Zambrano has helped thousands of the people and businesses in the past to get out of debt and start over.

Our goal is to help you find a fresh start FAST!

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