Many homeowners are now faced with the fact that their mortgage has become unaffordable.  Whether it's because of the adjustment of an option arm, unemployment or some other circumstance that has affected cash flow, a short sale may be a viable alternative to an inevitable foreclosure with eventual eviction.

In addition to helping a homeowner avoid foreclosure it can help the homeowner save their credit history.  While any late payments are reported to the credit bureau the homeowner will not have a foreclosure reported if the property was not foreclosed.  The transaction may be reported as "settled for less" and the damage to a credit score is less than if a foreclosure was reported.  In addition, the homeowner may be eligible to purchase a property again in as little as two years if credit has been re-established. Lastly, a foreclosure on a credit report may affect the ability to obtain employment or security clearance.

Short sales actually allow the homeowner to be in a bit of control as well.  When a homeowner can no longer afford to make their mortgage payments a foreclosure is inevitable if action is not taken.   If a loan modification is not a choice, the short sale will help in speeding up the unfortunate financial turmoil.  Since the process is quicker than a foreclosure, it will help the homeowner get on with their lives.