Answers to the Most Common Questions About Short Sales

 Is a short sale the same as a foreclosure?
No, a short sale is not the same as a foreclosure.
A short sale is when you sell your home for less than what you owe on the mortgage, with your lender’s permission, to avoid foreclosure. Foreclosure occurs when the lender takes your home through legal action after you miss payments. A short sale usually has less impact on your credit and gives you more control over the process.

Here’s a full guide if you want to see the steps involved in a short sale.

What’s the difference between a short sale and a deed in lieu?
In a short sale, you sell the home to a new buyer. In a deed in lieu, you give the house back to the lender.
Both can help you avoid foreclosure, but a short sale may be better if your home has market value. A deed in lieu can be faster, but not all lenders accept it, especially if there are multiple loans or liens on the property.

How does a short sale vs foreclosure impact my credit?
A short sale typically hurts your credit less than a foreclosure.
While both can lower your score, a short sale may show as "settled" or "paid for less than owed," while foreclosure stays on your record longer and can delay future home buying for up to seven years.

Can I stay in my home during a short sale?
Yes, you can usually stay in your home during the short sale process.
You remain the owner until the sale closes, which can take a few months. Just be prepared to move once the sale is complete.

How do I know if I qualify for a short sale?
You might qualify if you're behind on payments, owe more than your home is worth, and can prove financial hardship.
Every lender has different rules, but showing that you can’t keep up with the mortgage and that selling is your best option is key. An AI tool like Short Sale Advisor can quickly help you check your eligibility.

Also, watch out for these short sale mistakes that can delay or block your approval.

Want a Smarter Way to Understand Your Short Sale Options?
Want to skip the confusion? Try Short Sale Advisor now, it’s fast, free, and personalized.

You can also use this checklist to get your paperwork and documents in order fast.