When a foreclosure is threatening a mortgage, short sales may be resorted to as a means of escape. In a short sale, the lender agrees to forgive the remaining debt even if the homeowner sells the house at a price lower than what is owed. Mortgage short sales tend not to be the first option, but can be a feasible alternative to an actual foreclosure. Rather than foreclose, a short sale allows the homeowner to get out of the loan altogether, losing the home and simultaneously losing financial obligation. The short sale would need to be administered at the personal expense of the homeowner - hiring a real estate agent, advertising the sale, managing the actual sale, and even hiring a lawyer is all considered the homeowner's responsibility. However, this seemingly burdensome process can prove worth it. On the subject of credit, a short sale can come across as negative, but is actual advantageous compared to the terrible impact of foreclosure. Not only is the overall affect of a short sale lesser, it will also be removed from the credit report quicker.