You can't pay your bills, your worried about your family's health, and the bank is threatening foreclosure. A short sale is when a bank agrees to sell a house for less than is owed on the loan., including closing costs, realtor fees, etc.There is often misinformation when it comes to this topic. I often find that people facing foreclosure contact me after the bank has started legal preceedings against them. It is hard to face the fact that you might actually be foreclosed on, but many do not realize the long term ramifications foreclosure can have on your financial health. Please consult with a professional as soon as you know foreclosure is a possibility. A short sale will only stay with you 2 years and a foreclosure can stick with you for a a decade! Please understand that you will be in a much better position if you tackle the short sale, than if you ignore the problem and let it ruin 10 years of your life. Short sales are the best of two evils and your bank will appreciate your effort to make the short sale happen because foreclosures on average end up costing a bank $60,000. Please do not go through the embarassment of getting foreclosed on because it is preventable.