Do you know how many foreclosure cases are pending on today date in New York? You will really be shocked when you will read the number which is 39893. Can you really grasp it? I certainly feel you will not. However, I would like to know whether you know about foreclosure or not. I must tell you that foreclosure is one of the curses which you might have to face.

Actually sometimes the debtor is not able to pay back his debts or sometimes the market value of the property goes down even than the loan amount. Hence the borrower is not able to pay back the loan. It is because of this reason that he has to suffer from foreclosure.

However there is one way to save from foreclosure and that is short sale. You must be wondering that what short sale is really about. I must tell you that short sale is the process which is for your convenience. It happens many times that the market value of the real estate goes down the original loan amount taken on that property. You can have many reasons for not paying the loan. You might have lost your job.

It might be that you might have injured yourself in some accident and lost a large amount of money in hospital. There can be many faces of the agony. However the lender of the loan is not so cruel. You can always tell him why you are not able to pay back the loan and believe me that he will listen to you. He will understand your feelings and will definitely be ready to sell out the property even at the lower cost. Yes, he will also loose money but he will compensate for your sake.  Any way they are not in human. This is called short sale since the house is sold for a lower price and you as well as the lender loose some amount during sale. This is also a way to save you from the burden of foreclosure.

Hence Foreclosure and short sale are two similar processes but there are some differences. I will list some for you:

1. Foreclosure is only disadvantageous for the borrower and somewhat for the lender. However the short sale is equally disadvantageous for both borrower and lender.
2. Foreclosure badly affects the credit score whereas short sale affects it but quiet less than the foreclosure.

Hence we see that short sale is a very good option to save from foreclosure. It’s really the only way by which we can avoid foreclosure. Foreclosure is a real threat which comes once in every body’s life if really and short sale is the weapon which saves us from it.