We recommend that you try to avoid foreclosure to keep your financial record as clean as possible. A popular option is a short sale, also known as a pre-foreclosure sale. This transaction occurs when your mortgage servicer agrees to let you sell your home for less than the balance remaining on your mortgage, meaning you can sell your home and pay off a portion of your mortgage balance with your profits.

Selling to a real estate investor, such as Veteran Home Buyers, is another option. Like a short sale, selling your house for cash to an investor will help you avoid foreclosure and protect your credit score. Selling to an investor also offers a few benefits that a short sale usually does not.