Legal Question in Real Estate Law in Michigan

Re: Short sale vs. foreclosure

In order to do a short sale, you need to get it approved by your lender. But when you do this, there is no guarantee that they will agree to write off a deficiency balance, so you'd want to negotiated that too because you do not want them suing you for the remaining balance. The lender will look at your financial situation to determine whether they're even willing to allow a short sale. And just remember, even if there is a short sale, it will still show up as a foreclosure on your credit, though there may be a notation that there was a short sale, as opposed to it just saying foreclosure.