Foreclosures Process starts when the owner misses consecutive mortgage payments. Bank assumes ownership rights of the property. Property can be sold via auction or through the Multiple Listing Service. There are two types of foreclosures: Judicial and Non-judicial House is sold lower than market value because banks are interested in a quick sale. Takes on average 3 to 7 business days to receive a response from the bank after an offer has been submitted. Short Sales Process starts when the owner demonstrates hardship to the lender or when the owner misses consecutive mortgage payments. Bank agrees to sell property for less than the seller’s mortgage because there is not enough equity to pay off the mortgage. Money from sale goes directly to bank. Property is sold lower than market value. Typically takes around three to six months to receive a response from the bank after an offer has been submitted. On average, credit ratings lower the same amount of points whether from a foreclosure or from a short sale (i.e., a 30 to 300-point deduction).