how to arrange a short sale, short sale vs. foreclosureOne of my old friends told me that his brother had to learn how to arrange a short sale with his bank. I said that he was lucky to be able to sell his home as a short sale because a short sale vs. foreclosure is infinitely better for his credit report than a foreclosure. Once the economy heals and things start to pick up again, his brother will have to ask a mortgage expert about that short sale and the effect it will have on his ability to get another mortgage. I told my friend that his brother is doing a smart thing by working with his lender and learning to how to arrange a short sale. His brother certainly isn't alone in the need to sell a home for less than is owed on it. My friend bought his house close to the top of the market but he doesn't need to sell so he is staying put, even though the value has dropped. He made a sufficient down payment so his mortgage amount is below what the home is now worth, so he is relatively OK.