SoldPHXShortSaleAZ

Your Options — Honest Pros & Cons

Foreclosure is rarely the only option. Here are the six real paths Arizona homeowners take — what works, what doesn't, and how to choose.

Short Sale

Best when: You owe more than the home is worth and have a hardship.

Pros
  • Lender forgives the shortfall
  • Costs you $0 out of pocket
  • Credit recovers in ~2 years
  • You stay in control of the sale
Cons
  • Takes 60–120 days
  • Requires lender approval
  • Need to document hardship

Loan Modification

Best when: You want to keep the home and have stable income.

Pros
  • Lower monthly payment
  • Stay in the home
  • Avoids any sale at all
Cons
  • Requires income that supports new payment
  • Can take months and may be denied
  • Most modifications fail within 2 years if income hasn't recovered

Forbearance

Best when: Your hardship is temporary (a few months).

Pros
  • Pauses or reduces payments short-term
  • Quick to set up
Cons
  • Missed payments must be repaid later (lump sum or added to loan)
  • Doesn't solve a long-term problem

Deed in Lieu of Foreclosure

Best when: You can't sell and want out of the loan without foreclosure.

Pros
  • Avoids the public foreclosure record
  • Less harmful to credit than foreclosure
  • May include cash-for-keys
Cons
  • Lender usually requires you list the home for sale first (a short sale attempt)
  • May still owe a deficiency in some cases

Sell with Equity

Best when: Your home is worth more than you owe.

Pros
  • No foreclosure, no short sale, no lender approval
  • Walk away with cash in hand
  • Fastest option (30–45 days)
Cons
  • Requires real equity
  • Still costs you standard selling fees

Bankruptcy

Best when: You need to halt a foreclosure sale immediately or have broader debt issues.

Pros
  • Automatic stay halts the foreclosure auction
  • Chapter 13 can let you catch up over 3–5 years
Cons
  • Major credit impact (~7+ years)
  • Requires an attorney — talk to one before filing
  • Doesn't make the underlying debt go away on its own

Not sure which one fits?

Most homeowners don't — and that's normal. A 15-minute call is usually enough to know your best path.

Get a personal recommendation

Tell me about your situation — I'll tell you which option fits and why.

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