What Is a Short Sale?
A short sale occurs when a homeowner sells their property for less than the remaining mortgage balance, with lender approval. This option helps avoid foreclosure and minimizes damage to credit scores compared to foreclosure. Learn more about short sales here.

  • Step 1: Determine If You Qualify
    To be eligible for a short sale, you typically need to meet these criteria:

    • Financial Hardship – Lenders require proof of financial distress, such as job loss, medical expenses, divorce, or unexpected financial burdens.
    • Owe More Than the Home’s Value – Your mortgage balance must exceed the current market value of the property.
    • Inability to Afford Payments – You must demonstrate that making mortgage payments is no longer feasible.
    • No Other Assets Available – Lenders may require proof that you do not have other liquid assets to cover the mortgage shortfall.

  • Step 2: Contact Your Lender
    Once you determine that you qualify, notify your lender as soon as possible. Lenders will typically require:

    • A hardship letter explaining your situation
    • Financial statements and proof of income
    • Bank statements and tax returns
    • A comparative market analysis (CMA) from a real estate agent

      For more information on what your lender may need, read more here.

  • Step 3: Hire a Short Sale Expert
    Working with a short sale expert can significantly improve your chances of approval. A knowledgeable real estate agent or short sale specialist can:

    • Help price your home appropriately
    • Negotiate with the lender on your behalf
    • Manage the required paperwork and submission process
    • Find an experienced short sale expert here.

  • Step 4: List the Property and Find a Buyer
    Your home will be listed at fair market value. Once an offer is received, the lender will review it before approving the sale. This process may take weeks or months, depending on the lender’s requirements.

  • Step 5: Finalize the Short Sale
    If the lender approves the offer, you can proceed with the closing process. After the sale, be sure to:
    • Confirm with your lender that the debt is fully settled
    • Monitor your credit report for accuracy
    • Consider rebuilding your financial health for future homeownership


Final Thoughts
A short sale can be a lifeline for homeowners in financial distress, providing a way to avoid foreclosure and move forward with less financial damage. If you’re considering this option, reach out to a short sale expert to guide you through the process.