Short sale to the rescue
Lenders hate foreclosures because, even for them, they are legal, financial, and PR headaches. That’s why some lenders agree to a short sale, where you sell your home for less than everything you owe.
Agreeing to a short sale is a desperate action for a lender to take. Lenders don’t want to lose money on mortgages, but they also don’t want to spend their time foreclosing on, owning, and selling property.
So, after you spend a lot of time filling out paperwork and explaining how you got into this financial predicament, you might be able to persuade your lender to work with you on a short sale.
Short sales avoid foreclosure and the huge hit your credit score can take as the result of a foreclosure.