What is the Average Cost of A Foreclosure
 
A Report by the Joint Economic Committee of Congress, estimates that the average cost of a foreclosure, to the homeowner, lender, local government and neighbors (whose homes decline in value), is $78,000.   By contrast, preventing the foreclosure would cost $3,300 per home average.

Here's how the report breaks out that figure among various "stakeholders":
 

Homeowner
Lender
Local Government
Impact on neighbor's home value
Estimated total cost of foreclosure

 $  7,200
$50,000
$19,227
$  1,508
$77,935
 
We teach other agents how to do short sales for their clients and feel that a short sale (if there is no other way for the homeowner to keep the property) is by FAR, a better option for lenders than going through a foreclosure.

What is the Cost to Your Credit Score
 
Short Sale VS  Foreclosure
80-100 Points   250-280 Points
You Can Buy Another Home in About 2 years   You Can Buy Another Home in About 10 Years