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It is surprising that some homeowners actually weigh the choice in their mind as if there was a choice. When working with such an indecisive homeowner, it should be explained that if the foreclosure is not stopped and actually is completed by the lender, the homeowner could incur significant, long standing damage.

Typically their credit score will plunge by as much as 200 to 300 points.

However, short sales have a far less damaging affect on a homeowner's credit report.

A homeowner who successfully stops a foreclosure by utilizing the short sale method to sell their home may lose between 80 to 100 points off of their credit score.

What happens to a homeonwer's credit down the road? It can take from 3 to 5 years or more after a foreclosure before a mortgage lender will offer the homeowner an affordable interest rate.

A person who stopped their foreclosure via a short sale can typically qualify for a new mortgage and buy a home in as little as 18 months with the establishment of new credit. And the interest rate and LTV will be much more favorable.

Salvaging their credit should always be the primary concern for a homeowner when making the decision between a short sale and letting the home senselessly be lost to foreclosure.

The savings in interest payments alone should be convincing enough for most people, not to mention your buying power in the near and distant future.