Short Sale vs Foreclosure

Understanding a Short Sale vs Foreclosure

When you can no longer afford your mortgage and it becomes a serious financial issue, it is important to start evaluating your options. When facing foreclosure it is important to realize that your property may qualify for a short sale. There are extensive differences between a short sale and foreclosure. If you are unable to make your mortgage payments, you may be able to create a more favorable financial future by opting to sell your house via a short sale. There are various methods to assess short sale vs foreclosure and I will help you determine the best choice for your specific situation.

A short sale is often one of the best solutions when it comes to avoiding foreclosure. A short sale provides a homeowner with the opportunity to sell a home for less than the amount owned on the mortgage. Below is a list of possible situations and implications related to short sale scenarios. As a Denver Short Sale Specialist, I have vast knowledge and training and I will provide you with information on short sales and other foreclosure alternatives that are proven to work.


My ultimate goal when providing advice when it comes to a short sale is to help get back on the right financial track. A foreclosure can be a drastic experience that will likely affect your future and ability to own another home in the near future. The ability to obtain a second mortgage in the future may also be adversely affected. You will probably face loan eligibility issues and it will take several years for the situation to clear your credit report.

After a foreclosure, you may eventually want to seek a new mortgage or even a second loan on a different property. Loan applications almost always ask you if you have been involved in a foreclosure at any time within the past seven years. Answering “yes” to such questions will affect your ability to secure low interest rates – or loans at all! If you opt for a short sale instead of foreclosure, you will significantly increase your chances of securing future loans with lower interest rates.


In most situations, a short sale takes
approximately 50 points off your credit score. Conversely, a mortgage foreclosure can potentially take as much as 250-300 points off your credit score. A drop in your credit from a short sale will most likely affect your credit score for a year or less while a mortgage foreclosure often affects your credit for up to three years. Your credit history does not record or keep previous incidents of a short sale, while a mortgage foreclosure can be recorded publicly for as long as 10 years.


These days, many employers (or potential employers) reserve the right to look at your credit score. If your credit is checked and taken into consideration, you obviously want it to be as clean as possible.

If your job is at all related to the military, the government, or law enforcement, a low credit score due to a foreclosure may adversely affect you.


Many states allow a lender to go after a deficiency judgment or attain the difference between the sale price of a house and the amount still remaining on the mortgage. In some cases, a lender may look past this and disregard it all together. But if the lender does not give up the right to allow a deficiency judgment, a short sale normally results in a smaller deficiency because short sale properties often sell for more than foreclosed properties.


A short sale provides the opportunity for a more stable financial situation. You deserve to work with someone who will guide you through every step of the short sale process. I offer assistance and provide my clients with the most up-to-date information regarding short sale and foreclosure advice.

A short sale can positively impact the outcome of your financial situation, so please contact us right away.


With the right help and a detailed road map to get there, the stress of foreclosure can be made much easier. Work with a designated and trained agent with the proper credentials. All CDPE agents attend in-depth training on how to ethically handle short sales and complete transactions in the most efficient manner possible.

Provided by:
Jeff Corporon, Brix Real Estate, LLC
1315 S Clayton Street, Ste #200, Denver, CO 80210
Cell: (303) 475-1276 | Fax: (303) 496-0534