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How to Short Sale Your House: A Step-by-Step Guide

Jun 3, 2024

Facing financial difficulties and the looming threat of a foreclosure process can be overwhelming. However, a short sale offers a viable alternative to foreclosure, allowing you to sell your home for less than the mortgage balance owed and avoid foreclosure.

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A short sale can be a viable alternative to foreclosure for homeowners facing financial hardship. In a short sale, the lender agrees to let the owner sell their home for less than the mortgage balance owed, potentially mitigating damage to their credit score compared to a foreclosure.

The short sale process involves working closely with the lender, hiring experienced professionals, gathering necessary documentation, and finding a buyer for the property.

Understanding Short Sales

What is a Short Sale?

A short sale is a process where a homeowner sells their property for less than the outstanding mortgage balance, with the lender’s approval. The lender accepts this payoff and forgives the difference, releasing the borrower from the debt. 

A short sale is different than a foreclosure, where the lender seizes the property and allows the homeowner to potentially mitigate damage to their credit score. 

Short Sale Sign in front of a house - What is A Short Sale - Learn More

Short Sale vs. Foreclosure

While both short sales and foreclosures negatively impact a homeowner’s credit score, taxes, and future loan prospects, a short sale is generally considered less damaging than a foreclosure when a homeowner is facing financial hardship.

Short sales and foreclosures are both options for homeowners who are unable to make their mortgage payments, but there are some differences to consider:

2 hands holding a toy home and a gavel hitting a Wooden toy home - short sale vs. foreclosure
  1. Timing – Short sales can take longer to complete than foreclosures. Short sale transactions require a lot of paperwork and lender approval. Foreclosures generally move faster because the lender is focused on recovering the money owed.
  2. Financial Impact – Short sales are typically less damaging to a homeowner’s credit score than foreclosures. They are also cheaper for the lender because they avoid court and legal fees associated with foreclosures. However, in some cases, a short sale may result in taxable income for the forgiven debt unless certain exemptions apply.

  1. Seller Involvement – In a short sale transaction, the homeowner is more involved, working with their lender to find a buyer and get the sale approved. With a foreclosure, the lender repossesses the home through an auction or court action, often against the owner’s will.
  2. Future Homeownership – After a short sale, homeowners may be able to purchase another home without a long waiting period, although securing a mortgage might be more challenging. A foreclosure stays on a credit report for a minimum of seven years, and there is typically a waiting period of at least five years before buying another home.

Some homeowners facing foreclosure try to negotiate a short sale or other relief option with their lender first, while others simply walk away from the home and the mortgage and allow the lender to foreclose.

Common misconceptions about short sales and foreclosures

Common misconceptions about short sales include the belief that the bank would prefer foreclosure, which is not true as short sales often bring more money to the lender than foreclosure. 

Additionally, homeowners do not necessarily need to be behind on their monthly payments to qualify for a short sale, although this situation is more challenging.

Foreclosure occurs more often due to the homeowner’s financial situation. Whereas, a short sale tends to pick up in times of declining home values, when borrowers have more to repay with their mortgage than what they can reasonably expect to get from a buyer.

Preparing for the Short Sale Process

Educating Yourself on Short Sales

Before pursuing a short sale, it’s crucial to educate yourself thoroughly on the process and its implications. Here are some key steps to take:

  • Research short sale procedures and timelines in your specific state, as laws and regulations can vary. Understanding your rights and obligations is essential.
  • Learn about the potential impact on your credit score and future ability to obtain financing. While less damaging than foreclosure, a short sale still has credit consequences you should be aware of.
  • Consult with a qualified real estate agent who specializes in short sales to understand their role, fees, and how to effectively market your property.
  • Seek advice from an experienced real estate attorney familiar with short sales in your area. They can explain the legal process, review documents, and protect your interests.
  • Consider speaking with a tax professional about potential tax liabilities from forgiven debt in a short sale and any available exemptions.
  • Explore all alternative options first, such as loan modifications, forbearance agreements, or bankruptcy, to determine if a short sale is truly your best path forward.
  • Understand the importance of setting a competitive purchase price to attract buyers and satisfy lender requirements.

Thoroughly educating yourself allows you to make an informed decision and navigate the short sale process with realistic expectations. Having a team of qualified professionals on your side is also crucial for a smooth transaction.

Consult Short Sale Experts

When preparing for a short sale, it’s highly recommended to consult with experienced professionals who can guide you through the complex process. Here are some key professionals to consider working with:

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Real Estate Agent

Hire a real estate agent who specializes in short sales and has extensive experience navigating this type of transaction. They can provide an accurate market analysis, price your home competitively, market the property effectively to potential buyers, and facilitate negotiations with the lender. 

Be aware of real estate agents that rely solely on third-party companies to help you process your short sale. Often these agents are not families with the short sale process and deadlines and may cause more harm to your already stressful situation.

Real Estate Attorney

An attorney who focuses on short sales and foreclosures can review the short sale documents, ensure you understand your rights and obligations, and represent your interests when dealing with the lender. They can also advise you on the legal and tax implications of a short sale.

Tax Professional

Consulting a certified public accountant (CPA) or tax advisor is crucial, as forgiven debt from a short sale may be considered taxable income. They can explain any potential tax liabilities and help you determine if you qualify for exemptions like the Mortgage Forgiveness Debt Relief Act.

Housing Counselor

Non-profit housing counselors approved by the U.S. Department of Housing and Urban Development (HUD) can provide free or low-cost guidance on your options, including short sales. They can help you understand the process, prepare the necessary paperwork, and potentially negotiate with your lender.

Financial Advisor

If you have significant assets or investments, speaking with a financial advisor can be beneficial. They can assess your overall financial situation, advise you on protecting your assets during the short sale, and develop strategies for rebuilding your credit afterward.

While hiring multiple professionals may seem costly upfront, their expertise can ultimately save you time, money, and stress by ensuring the short sale is handled properly from start to finish. Attempting a short sale without professional guidance increases the risk of costly mistakes or lender rejection.

Assessing Your Situation

Evaluating Financial Hardship

To determine if a short sale makes sense and is the right option for you, you’ll need to carefully assess your financial situation and inability to continue making your mortgage payment. Here are some important steps you will need to have ready:

Identify the HardshipClearly define the specific circumstances causing your financial difficulties, such as job loss, income reduction, divorce, medical issues, or other major life events. Lenders require documented proof of a legitimate hardship to consider a short sale.
Analyze Income and ExpensesEvaluate your current income sources and monthly expenses to understand the severity of your situation. Calculate your debt-to-income ratio and deficit between what you earn and what you owe each month.
Explore Alternatives FirstBefore pursuing a short sale, explore alternatives like loan modifications, forbearance agreements, debt consolidation, or bankruptcy. Exhaust all options to keep your home if possible.
Determine If You’re UnderwaterCheck if the amount you owe on your mortgage exceeds the current market value of your home. Being underwater, or having negative equity, is typically required for short sale approval. 
A knowledgeable real estate agent familiar with short-sale properties should be able to provide you with local market analysis to help you determine if you are underwater with your mortgage balance.
Assess Ability to Pay DeficiencyFind out if your mortgage lender can pursue a deficiency judgment against you for any remaining unpaid mortgage balance after a short sale. Determine if you have assets to cover this potential liability.
Gather DocumentationStart compiling paperwork like pay stubs, bank statements, hardship letters, and tax returns. Lenders require detailed documentation to evaluate your hardship and financial situation.

By carefully assessing your unique circumstances, financial situation, and ability to meet your mortgage obligations going forward, you can determine if pursuing a short sale is truly necessary or if other options may be more suitable. Consulting housing counselors and real estate professionals can also provide valuable guidance during this evaluation process.

Exploring Alternative Options to a Short Sale

Before pursuing a short sale, it’s important to thoroughly explore all potential alternatives that could allow you to avoid losing your home. Here are some options for you to consider:

Loan ModificationContact your lender to request a loan modification, which can involve adjusting your interest rate, extending the loan term, or adding missed payments to the principal balance. This can make your monthly payments more affordable and allow you to keep your home.
Forbearance AgreementIf your financial hardship is temporary, a forbearance agreement allows you to pause or reduce your mortgage payments for a specific period. This gives you breathing room to get back on your feet before resuming full payments.
Debt ConsolidationConsolidating high-interest debts like credit cards into a single, lower-interest payment could potentially free up funds to cover your mortgage each month.
BankruptcyFiling for bankruptcy either Chapter 7 or Chapter 13, can provide debt relief and temporary protection from foreclosure. However, this option has severe credit consequences and should only be considered as a last resort after consulting an attorney.
RefinancingIf you have sufficient home equity and income, refinancing your mortgage at a lower interest rate could reduce your monthly payments. However, this may not be an option if you’re already underwater on your mortgage or have fallen behind on your mortgage payments.
Traditional SaleDetermine if selling your home through a traditional real estate listing is feasible based on your equity position and ability to pay off the full mortgage balance. Unlike traditional sales, buying a short sale involves additional considerations such as lender approval and potential delays.
Renting Out the PropertyIf temporarily relocating is an option, renting out your home could provide income to cover some or all of your mortgage payments until your situation improves.

By thoroughly evaluating each of these potential alternatives and their requirements, you can make an informed decision about whether pursuing a short sale is truly the best path forward given your unique financial circumstances.

Initiating the Short Sale Process

Contacting Your Mortgage Lender

To initiate the short sale process, the first step is to contact your mortgage lender or loan servicer. Here are important steps you will need to take:

Contact the Loss Mitigation Department

Speak with a representative at your lender’s loss mitigation department, as they handle alternatives to foreclosure like short sales. Explain that you need to pursue a short sale due to financial hardship and request the required paperwork.

Provide Hardship Documentation

Be prepared to submit a hardship letter detailing the circumstances preventing you from making your mortgage payments, such as job loss, divorce, medical issues, etc. Include supporting documentation like pay stubs, bank statements, bills, and tax returns to verify your hardship.

Discuss Your Eligibility

The lender will likely have specific eligibility criteria you must meet for a short sale, such as being underwater on your mortgage and unable to catch up on payments. Provide details on your current financial situation, income, assets, and the estimated market value of your home.

Request Short Sale Package

Ask the lender for their official short sale package, which outlines the documentation and information they require from you to review your request. This typically includes financial statements, a hardship affidavit, a listing agreement, a purchase contract, and more.

Understand the Process

Have the lender explain their specific short sale process, including typical timelines, any fees you may be responsible for, and what will be required from you at each step. Get the name and contact information of your designated short sale negotiator.

Short Sale Process Checklist

Get It in Writing

Request that the lender provide you with written confirmation that they are allowing you to pursue a short sale on your property. This documentation can help if you encounter any issues during the listing and sale process.

Being proactive, prepared with your documentation, and having an open dialogue with your lender from the start can help initiate and facilitate a smoother short sale process. However, keep in mind that the lender has no obligation to approve your short sale request.

Compiling Short Sale Package

Orange File Folder - Short Sale Package Checklist

To initiate the short sale process, you’ll need to prepare a comprehensive short sale package to submit to your lender for review and approval. The specific requirements may vary, but generally the package should include:

Financial Information

  • Tax returns for the past 2 years with all schedules and forms
  • Recent pay stubs and proof of income for all borrowers
  • Bank statements for the past 2-3 months (all pages)
  • Profit and loss statement if self-employed

Hardship Documentation

  • Hardship letter explaining the circumstances causing financial difficulties like job loss, medical issues, divorce, etc.
  • Supporting documents verifying the hardship such as termination letters, medical bills, court orders

Property Details

  • Listing agreement with an experienced short sale agent
  • Comparative market analysis justifying the proposed listing price
  • Recent appraisal or broker price opinion (BPO) if available
  • Mortgage statements for all loans on the property

Proposed Sale Terms

  • Executed purchase contract with buyer’s prequalification letter
  • Estimated closing costs and net proceeds from the sale
  • Preliminary HUD-1 settlement statement

Additional Documents

  • Authorization forms allowing the lender to discuss the loan with third parties
  • Financial statement or form detailing income, assets, and liabilities
  • Proof of homeowner’s insurance and tax payments

Providing a complete and well-organized short sale package demonstrates to the lender that you are prepared, have marketed the home appropriately, and have a legitimate hardship preventing you from continuing mortgage payments. Any missing documentation can delay the lender’s review process. Working closely with an experienced real estate agent and an attorney can ensure you include all necessary components in your submission.

Listing for Short Sale

When listing your property for a short sale, there are several important considerations:

Hire an Experienced Short Sale Agent

Work with a real estate agent who specializes in short sales and has extensive experience navigating this complex process.

An experienced real estate agent understand the additional requirements, timelines, and negotiations involved with lenders.

Proper Disclosures For Short Sale Property

Disclose upfront in the listing that the property is a short sale and all offers are subject to lender approval. This sets proper expectations with potential buyers.

A short sale addendum is often required, outlining conditions such as lender approval, time for short sale approval, and closing costs.

Pricing Strategy

Price the home competitively based on a comparative market analysis of recent sales in the area. The price should be attractive to buyers while still being acceptable to your lender, who aims to minimize losses.

Marketing Approach

Your agent should implement a comprehensive marketing plan to attract qualified buyers, including online listings, open houses, print advertising, and contacting investors interested in short-sale properties.

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Respond Quickly to Offers

Be prepared to review and respond promptly to any offers received, as lenders prefer a fast process. Have your agent promptly submit offers along with the full short sale package for lender review.

Manage Expectations

Set realistic expectations with buyers that the short sale process can take several months due to lender approval timelines. Facilitate open communication to prevent buyers from walking away during delays.

By working closely with an experienced short sale agent and properly marketing the property from the start, you increase your chances of attracting legitimate offers that your lender will potentially approve. Proper pricing and disclosures are also crucial for a successful short-sale listing.

Marketing the Short Sale

When marketing a short-sale property, it’s crucial to implement a comprehensive strategy to attract qualified buyers and facilitate a smooth transaction. Here are some important steps you will need to take:

Hire an Experienced Short Sale Agent

This cannot be stressed enough – work with a real estate agent who specializes in short sales and has a proven track record of successfully marketing and closing these transactions. Their expertise is invaluable for navigating the complexities involved.

Proper Disclosures

Clearly disclose in all marketing materials that the property is a short sale subject to lender approval. Set appropriate expectations from the start regarding potential delays and additional requirements. It is also very crucial to disclose the property’s condition up front to avoid additional delays.

Competitive Pricing

Price the home competitively based on a comparative market analysis of recent sales in the area. The price should be attractive to buyers while still being reasonable enough for the lender to approve.

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Online Presence

Utilize online marketing channels like the multiple listing service (MLS), real estate websites, and social media to maximize exposure. Professional photography and virtual tours can help generate interest.

Open Houses

Host open houses to allow potential buyers to view the property in person. Your agent should be prepared to explain the short sale process and set realistic expectations.

Target Investors

In addition to traditional buyers, your experienced short sale real estate agent should market the property to real estate investors who may be interested in purchasing a short-sale property at a discount with the intention of renovating and reselling.

However, be aware of low offers from investors as often time lenders will reject short sale applications that include investors’ offers that is too low.

Leverage Your Network

Have your agent reach out to their professional network, including other agents, to spread awareness about the short sale listing and potentially find qualified buyers.

Respond Promptly

Be prepared to review offers quickly and submit them along with the complete short sale package to the lender for approval in a timely manner. Delays can cause buyers to lose interest.

By implementing a comprehensive marketing strategy tailored to short sales, you increase the chances of attracting legitimate offers from qualified buyers that the lender will potentially approve. Proper pricing, disclosures, and working with an experienced agent are also crucial components.

Negotiating with the Lender

Submitting Offer to Lender

When negotiating with your lender to get a short sale offer approved, the key steps are:

Submit Complete Short Sale Package

Once you have an executed purchase contract from a buyer, promptly submit the full short sale application to your lender for review. This should include:

  • The purchase agreement with all terms and conditions
  • The buyer’s pre-approval letter and proof of funds
  • Your updated financial information and hardship documentation
  • A comparative market analysis justifying the proposed sale price
  • Any additional documents required by the lender

Lender’s Property Valuation

The lender will order an appraisal or broker price opinion (BPO) to assess the property’s current market value. They will analyze how the proposed sale price compares to avoid taking an unnecessary loss.

Potential Negotiations

The lender may counter the initial offer with a higher price or modified terms based on their valuation. Be prepared to negotiate back and forth through your real estate agent.

Provide Additional Documentation

If requested by the lender, supply any supplementary paperwork promptly, such as additional proof of your financial hardship, updated bank statements, etc. Delays can cause the lender to lose confidence.

Remain Patient

The lender’s full review process often takes 2-3 months, sometimes longer. Persistently follow up, but understand the lender is motivated to maximize their return and will take their time evaluating the short sale.

Consider Compromise

If the lender’s counteroffer is higher than the buyer’s offer, explore compromises like asking the buyer to increase their price or offer to contribute funds at closing to make up the difference.

By submitting a comprehensive short sale package upfront and maintaining open communication during the negotiation process, you improve your chances of getting an offer approved that is acceptable to all parties involved.

Awaiting Lender’s Decision

After submitting your short sale offer and package to the lender, the next step is to patiently await their decision on whether to approve or reject the proposed sale terms. Here are some key points about this stage of the process:

Lengthy Review Period

Lenders typically take 30-90 days on average to review and make a determination on a short sale, though timelines can vary significantly. Be prepared for a lengthy waiting period as the lender conducts their due diligence. This is why it is important to make sure that all documentation is submitted together to avoid any delays in the review process.

Lender’s Valuation and Loss Analysis

The lender will order an independent appraisal or broker price opinion (BPO) to assess the property’s current market value. They will analyze how the proposed sale price compares to avoid taking an unnecessary loss on the outstanding mortgage balance.

Potential Negotiations

If the lender believes the offer is too low based on their valuation, they may counter with a higher price or modified terms. Be prepared to negotiate back and forth through your experienced real estate agent to reach a mutually acceptable agreement.

Provide Requested Documentation

The lender may request additional documentation from you during their review, such as updated financial statements, hardship details, or clarification on the purchase contract. Promptly providing any requested materials can help prevent delays.

Persistent Communication

While being patient, maintain consistent communication with your lender and real estate agent. Politely follow up periodically on the status, but avoid excessive inquiries that could be viewed as harassing.

Buyer’s Patience and Backup Offers

Ensure the buyer understands the lengthy waiting period involved. In some cases, buyers may lose patience and walk away, so your agent should be prepared with backup offers if needed.

Awaiting lender approval is often the most difficult part of the short sale process due to the uncertainty involved. However, staying patient, providing requested information promptly, and maintaining open communication can improve your chances of receiving a timely and favorable decision

Closing the Short Sale

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Finalizing the Short Sale

Once the lender approves the short sale offer, you can move forward with finalizing the sale and closing the transaction. Here are the steps in this final stage:

Schedule Closing DateWork with your agent, the buyer’s agent, and the title company to schedule a mutually agreeable closing date. This is typically 30-45 days from the lender’s approval date, but timelines can vary.
Lender’s Closing ConditionsCarefully review the lender’s short sale approval letter, which will outline any specific conditions that must be met for the sale to close. These may include a minimum net proceeds amount, closing cost restrictions, or the waiving of certain fees.
Buyer’s Final WalkthroughAlthough oftentimes a short sale property is sold “as is” the buyer will typically conduct a final walkthrough of the property 24-48 hours before closing to ensure it is in the same condition as when their offer was made. Be prepared to address any issues that arise.
Review Closing DocumentsPrior to closing, review the HUD-1 settlement statement and other closing documents with your real estate agent and attorney. Ensure all terms match the lender’s approval and that you understand your financial obligations.
The HUD-1 will also need final approval from the mortgage lender before closing.
Attend ClosingAt the closing, you will sign all necessary documents to transfer ownership to the buyer. The buyer will provide funds to pay off your mortgage lender and cover any closing costs.
Lender’s Mortgage SatisfactionOnce the lender receives the proceeds from the sale, they will release the mortgage lien and forgive any remaining deficiency balance per the terms of the short sale agreement.
Post-Sale ConsiderationsBefore closing, be prepared to vacate the property per the timeline specified in the contract. Ensure you have made arrangements for your next housing situation. Consult with a tax advisor regarding any potential tax implications from the short sale, such as forgiven mortgage debt.

By carefully navigating the closing process and addressing all lender requirements, you can finalize your short sale and move forward from your mortgage hardship. Working closely with experienced professionals is crucial for a smooth closing.

Post-Closing Considerations

After closing on a short sale, there are several important considerations for sellers to keep in mind:

Tax Implications

Forgiven mortgage debt from a short sale may be considered taxable income by the IRS. Consult with a tax professional to determine if you qualify for exemptions like the Mortgage Forgiveness Debt Relief Act and understand any potential tax liabilities.

Credit Impact

A short sale will negatively impact your credit score, though typically not as severely as a foreclosure. The short sale will remain on your credit report for up to seven years. Work on rebuilding your credit over time by making all payments on time, keeping debt levels low, and avoiding new late payments.

Deficiency Judgments

In some states, lenders can pursue a deficiency judgment against you after a short sale for the difference between the sale proceeds and your outstanding loan balance. Understand your state’s laws and whether your short sale agreement included a waiver of deficiency.

Fannie Mae and Freddie Mac Waiting Periods

If your short sale involved a Fannie Mae or Freddie Mac loan, you may be subject to a waiting period before being eligible for a new mortgage.

As of 2018, Fannie Mae requires a four-year waiting period (two years with extenuating circumstances), while Freddie Mac requires a four-year waiting period (two years with extenuating circumstances).

Relocating and Housing Options

Make arrangements for where you will live after vacating the short-sale property. Options may include renting, moving in with family, or purchasing a more affordable home. Budget for moving expenses and potential rent or down payment costs.

Monitoring Credit Reports

After a short sale, regularly monitor your credit reports from all three bureaus (Equifax, Experian, and TransUnion) to ensure the mortgage account is reported accurately as “settled” or “paid in full for less than the full balance.” Dispute any inaccuracies with the credit bureaus.

By understanding these post-closing considerations and taking proactive steps to address them, short-sale sellers can better navigate the financial and logistical challenges that may arise. Consulting with legal, tax, and housing professionals can provide valuable guidance during this transition period.

Short Sale Benefits Recap

Opting for a short sale over foreclosure offers several key benefits for homeowners facing financial hardship:

Less damage to credit:While a short sale does negatively impact credit scores, it is generally less severe and shorter-lasting than the hit from a foreclosure. Short sales typically remain on credit reports for up to seven years, while foreclosures can linger for seven to ten years.
Faster recovery timeline:Homeowners who complete a short sale may be eligible to purchase another home within as little as two years, depending on their circumstances and the lender’s requirements. In contrast, foreclosures often require a minimum seven-year waiting period before qualifying for a new mortgage.
Avoid deficiency judgments:In some states, lenders can pursue deficiency judgments to collect the difference between the mortgage balance and what the home sells for at foreclosure auction. Many short sale agreements include deficiency waivers that protect the seller from this additional financial burden.
Reduce legal and financial liability:Foreclosures involve a lengthy legal process that can be costly and stressful for homeowners. With a short sale, the homeowner works collaboratively with the lender to sell the property and settle the debt, reducing legal entanglements.
More control over the sale:In a short sale, the homeowner has more control over the process, including selecting a real estate agent, determining the list price, and negotiating with buyers. Foreclosures offer little to no homeowner involvement and are driven primarily by the lender’s interests.

Frequently Asked Questions (FAQs)

Can I buy another home after a short sale?

Depending on the type of loan and circumstances, homeowners who complete a short sale may need to wait 2-4 years before being eligible to purchase another home. This is shorter than the 7-year waiting period typically required after a foreclosure.

How will a short sale affect my credit?

A short sale will have a negative impact on credit scores, as the mortgage is settled for less than originally agreed. However, the impact is typically less severe than a foreclosure. Exact point drops vary based on the individual’s unique credit profile.

Will I owe money after a short sale?

In some cases, the lender may require the homeowner to sign a promissory note for some or all of the deficiency balance remaining after the short sale. However, many lenders agree to forgive the deficiency as part of the short sale agreement.

How long does a short sale take?

The short sale process can take several months from start to finish, as the lender must review and approve the proposed sale. Timelines of 60-120 days or more are common, depending on the lender and complexity of the transaction.

What are the eligibility requirements for a short sale?

To qualify for a short sale, homeowners typically must: Demonstrate a legitimate financial hardship. Owe more on the mortgage than the home’s current market value. Be in default or at risk of imminent default on the mortgage

How does a short sale differ from a foreclosure?

In a short sale, the homeowner works with the lender to sell the property, with the sale proceeds going to the lender. A foreclosure is when the lender takes legal action to seize the property after the homeowner defaults on the mortgage. Short sales are generally less damaging to credit than foreclosures.

What is a short sale?

A short sale is when a homeowner sells their property for less than the outstanding mortgage balance, with the lender’s approval. The lender agrees to accept the proceeds from the sale as full or partial satisfaction of the debt.

Helpful Short Sale Resources

Utilizing available resources can help you better understand the short sale process, know your rights, find qualified professionals to assist you with your short sale transaction, and increase your chances of a successful short sale outcome

Here are some additional resources that can be helpful when navigating the short sale process:

Government Resources

Non-Profit Housing Counselors

Online Tools and Calculators

  • Websites like Zillow and Redfin offer short sale information and tools to estimate your home’s value and potential short sale proceeds.
  • Mortgage calculators can help determine if you qualify for a short sale based on your loan balance versus the property’s value.

Real Estate Professional Organizations

  • The National Association of Realtors provides short sale resources for homeowners, including a Short Sales & Foreclosure Resource certification for agents.
  • Local real estate associations may offer short-sale education courses or networking opportunities to connect with experienced short-sale professionals.

Legal Resources

  • State bar associations can refer homeowners to real estate attorneys who specialize in short sales and foreclosure defense.
  • Legal aid organizations may be able to provide low-cost or pro bono legal assistance for those who qualify financially.

While short sales are not without their challenges and drawbacks, for many homeowners they offer a more favorable alternative to foreclosure. By minimizing credit damage, providing a quicker path to homeownership, avoiding deficiencies, reducing legal issues, and allowing more control, short sales can help homeowners emerge from a difficult financial situation with a brighter future ahead.

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Fab Kellum author of the Girl, Get Out of Debt! blog

Hey you! Welcome to The Budget Academy. I am Fab, a mom, and an entrepreneur at heart. Like many, I have overcome financial struggles, and now I get to share with you how I became debt-free and what I learned on my own personal journey.  I have a Finance and Real Estate background and am passionate about helping others succeed and achieve financial freedom.  So, please don’t be shy, let’s connect and start this journey together! Learn more about me here.