Understanding the difference between a short sale and foreclosure is crucial for homeowners in distress. A short sale occurs when a homeowner sells their property for less than what they owe on their mortgage, with lender approval required to proceed. This option allows the homeowner to avoid a foreclosure, which can have more severe consequences on their credit and financial future. Foreclosure, on the other hand, is a legal process initiated by the lender when a homeowner defaults on their mortgage payments, resulting in the lender taking ownership of the property. While foreclosure can lead to a quicker resolution for the lender, it is generally more detrimental to the homeowner’s credit score and can have lasting impacts on their ability to secure future financing. Visit – Short Sale Vs Foreclosure