short sale vs. foreclosure, how to arrange a short saleSome of life's decisions are really difficult, and debating whether to sell as a short sale vs. foreclosure is one of the hardest financial decisions a family can make. In terms of morals and ethics, the short sale vs. foreclosure leans heavily toward the short sale process because you are only losing your down payment, while the bank is losing the difference between your home's current market value compared to the amount they loaned you in the first place. Often when people are on the verge of a foreclosure, their thinking is clouded by their emotions. They may have lost a job and all seems hopeless, but now banks are willing to do loan modifications to help the home owners out in the short term, and many tell them that once their new payments are put in place that they will have the option to sell the home as a short sale down the road just in case their finances don't improve. They may explain how to arrange a short sale down the road. The last thing banks need now is another home on their books, so if you're debating between a short sale vs. foreclosure, see if you can work out a loan modification instead of a foreclosure to save your credit score and help the bank, too.