A foreclosure is a legal process where your lender takes ownership of your home. If you stop making your mortgage payments and the house is sold at a foreclosure auction, this can happen. On the other hand, a short sale transaction is a real estate transaction in which you sell your home for less than the balance remaining on your mortgage. The proceeds from the sale go to your lender to pay off the mortgage. You may be required to pay a deficiency judgment to your lender if the sale price is not enough to cover the mortgage balance. A short sale can help you avoid foreclosure and the damage it can do to your credit score. It can also help you sell your home before the bank forecloses on it. If you struggle to make your mortgage payments and the house is worth less than your mortgage balance, a short sale may be a good option. For more information on short sales and to get started with the process, contact Blue Diamond Realty now. We can assist you in obtaining the best possible outcome for your circumstance. Get started today and a real estate agent will be in contact soon.