Short sales are a foreclosure alternative. Foreclosures appear on credit ratings for at least 7 years and most borrowers later find themselves declaring bankruptcy. So, they suggest a short sale to the lender. The lender will usually agree to a short sale once the borrower has reached the point of no return. They cannot pay their mortgage and foreclosure will happen. For mortgage lenders, foreclosure proceedings are long, full of hassle, and costly. They want to avoid the process just as much as the borrowers.