Ok. I believe a short sale is when I sell the home for less than the $825,000 owed on it, but I read somewhere here that a short sale or deed in lieu of foreclosure is just as bad as defaulting. I've been trying to sell since March and have lowered the price below $825,000. Can anyone shed some light? I'm waiting to hear from the bank's attorney. From others I know who are going through this, the letter from the attorney simply says you have 30 days to pay up or we sell your home at a trustee sale. I was worried about deficiency judgement, but this is in Arizona and they have laws that do not allow banks to go after deficiencies. I'm more worried about FICO hit and future creditworthiness.