Some homeowners at their wits end are ready to throw in the towel and give up on their house. They can’t afford the payments, they are stressed out and no longer want to deal with a mortgage. If you’re in a similar situation, take a deep breath and listen up. I know it’s a lot easier to walk away from your problems, but this is what I tell homeowners facing foreclosure: “Short sell it”.

The consequences of going through a foreclosure process is a lot more damaging than short selling your home. The biggest and foremost reason to try and avoid foreclosure proceedings against you is to minimize damage to your credit history. When you short sale your home, the lender is willing to accept a payoff amount that is less than what you actually owe. Yes, this information is reported to the credit bureaus, but it shows that you made an effort to rectify your financial situation by selling your home at the current market value. Short sale information typically stays on your credit history for about a year.

Conversely, foreclosures are judgments against you and therefore, can stay on your credit history report for 5 to 7 years. Furthermore, the next time you apply for a mortgage, you’re going to have to check that little box that asks whether you have ever been involved in a foreclosure. Even if it’s been more than 7 years, it still doesn’t look good.

Bottom line: hang in there, and seek the advice of a real estate professional in your area who can work through a short sale process for you.