SHORT SALE	FORECLOSURE
Homeowner's involvement	Voluntary by the homeowner but requires approval from the lender	Involuntary for the homeowner; the lender takes legal action to take control of the property
Speed and timing	Typically takes 90 to 120 days or even longer, since the bank won’t approve the sale without a buyer agreeing to its demands	Moves along much faster since lenders want to recoup the costs incurred by the unpaid mortgage
Impact on credit score	Far less damaging to the borrower’s credit score	Will stay on a borrower’s credit report for seven years
Living in the home	Homeowners can stay in the home until the sale is completed	Homeowners are forced to vacate
Payment terms (for buyers)	Can be bought with a mortgage loan	Can only be purchased with cash
Method of sale	Listed by a real estate agent specializing in short sales	Auctioned

Working with buyers and sellers across LA? Connect with Justin's team at The Borges Real Estate Team — full-service residential brokerage serving Greater Los Angeles.

Justin also founded The Answer Engine , helping local businesses show up in AI search platforms like ChatGPT and Google AI Overview.