Short Sale vs. Foreclosure: What's the Difference?
Compare a short sale and a foreclosure in plain language: who controls the sale, how each is reported, and what to ask a professional before you decide.
Who's in control
In a short sale, you sell the home on the open market with your lender's approval. In a foreclosure, the lender takes the home and sells it at auction.
Credit and future loans
Both show up on your credit report. Many homeowners find a short sale easier to recover from, and some loan programs have shorter waiting periods before a new mortgage after a short sale. Rules vary by program, so ask a lender or credit counselor about your situation.
The remaining balance
Whether you could owe the leftover balance after either one depends on your lender and the agreement you sign. Have a Tennessee attorney or tax professional review any short sale approval before you sign.
Talk it through, confidentially
Call Spring Mountain Realty PLLC before the sale date.
(865) 935-0500More questions
- How long does foreclosure take in Tennessee?
- What happens at a trustee's sale?
- Can I sell my house before foreclosure?
- How does a short sale work?
Help by town
Spring Mountain Realty PLLC is a Tennessee real estate brokerage, not a lender, law firm, or foreclosure-rescue service, and is not affiliated with your mortgage company. We cannot promise that a lender will approve a short sale or that a foreclosure will be stopped. This is general information, not legal, tax, or credit advice. Free help is available from a HUD-approved housing counselor at (800) 569-4287.