Foreclosure
You do nothing and the lender forces a trustee's sale.
Worst for credit, no control over timing, and you risk losing equity at auction. Avoid if you can.
Compare your options
Foreclosure vs. short sale vs. deed in lieu vs. cash sale
If you can't keep the home, you still choose how to let it go. Here's how the four paths compare on credit, equity, speed, and what you walk away with.
Foreclosure vs. short sale vs. deed in lieu vs. selling for cash
If you can't keep your home, you still get to choose how you let it go — and the choice has big consequences for your credit, your equity, and your stress. Here's a plain comparison of the four paths Washington homeowners weigh.
Short sale
You owe more than the home's worth, so the lender agrees to accept less and you sell.
Best if: you're underwater. Less credit damage than foreclosure, but slower (needs lender approval).
Deed in lieu
You hand the deed back to the lender to satisfy the debt and walk away.
Best if: little or no equity and you just need a clean exit without a sale.
Sell for cash
Keeps equityYou sell before the sale — fast, as-is, no fees — and keep the difference between the price and what you owe.
Best if: you have equity and want speed, certainty, and to protect your credit.
How they compare at a glance
- Credit damage: foreclosure worst → short sale / deed in lieu moderate → pre-sale least.
- Your equity: you keep it only by selling before the sale; short sale and deed in lieu assume little/none.
- Speed: cash sale fastest; foreclosure on the lender's clock; short sale slowest.
- Deficiency: after a non-judicial foreclosure of a primary home, the lender generally can't pursue a shortfall (RCW 61.24.100); in a short sale, get any waiver in writing.
The deciding question is almost always: do you have equity? If yes, selling before the sale beats all the rest. If you're underwater, a short sale or deed in lieu avoids the worst credit hit. We can help you figure out which bucket you're in — free.
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Comparing your options — FAQ
What's the difference between a short sale and a deed in lieu?
In a short sale you sell the home (with the lender accepting less than you owe); in a deed in lieu you simply hand the home back to the lender. Both avoid a foreclosure on your record.
Which option protects my credit best?
Selling before the foreclosure protects it best because it avoids the foreclosure mark entirely. Short sale and deed in lieu are next; foreclosure is worst.
How do I know if I have equity?
Compare what your home would sell for to what you owe (including any second loans and liens). If the home is worth more, you have equity worth protecting by selling — we can help you estimate it free.
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Tell us where you stand — we'll help you sort it out.