Considering a Short Sale? Here’s What You Need to Know
If you’re thinking about selling your home and the total amount owed on your mortgage is greater than what your home is worth, you may be facing a short sale.
A short sale occurs when the net proceeds from selling your home are less than your total mortgage balance and closing costs, and you don’t have other funds to make up the difference.
This is different from a foreclosure, where your lender takes legal ownership of your home and sells it after a lengthy process.
As a Certified Short Sale and Foreclosure Resource Specialist, I’ve helped many homeowners successfully navigate and close short sales — and I can help you, too.
📞 If you’re unsure where to start, contact me today for a confidential consultation. I’ll help you review your options and create a plan that fits your situation.
1. Explore Loan Modification Options First
If you’re struggling financially, your first step should be to contact your lender. Many lenders offer programs that may help you stay in your home, such as:
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Refinancing your loan at a lower interest rate
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Creating a revised payment plan to help you get current
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Offering a temporary forbearance period
If a loan modification doesn’t resolve your hardship, a short sale could be the best alternative if:
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Your home is worth less than what you owe
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You’re facing a true financial hardship (such as job loss or medical bills)
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Your lender is open to discussing a short sale
2. Work with an Experienced Short Sale Team
A short sale requires specialized expertise. The first step is to hire a qualified real estate professional and a real estate attorney experienced in short sales.
As a Short Sale and Foreclosure Resource Specialist, I can guide you through each step, including:
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Providing a comparative market analysis (CMA) to determine fair market value
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Setting the right listing price and marketing your home
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Coordinating directly with your lender(s)
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Negotiating buyer offers
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Preparing and submitting your short sale package for lender approval
Remember: Your lender (and any lien holders) must approve the sale and release their liens before the sale can close.
💬 Let’s talk about your options. I can help you position your home for a successful short sale while minimizing stress and uncertainty.
Contact me today to get started.
3. Get Your Documentation Ready Early
Lenders require specific documentation before approving a short sale. You can save time by gathering these materials early:
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A hardship letter explaining your financial situation and need for a short sale
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A copy of your listing agreement and purchase contract
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Proof of income and assets
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Federal tax returns for the past two years
4. Be Prepared for a Longer Process
Short sales can take several weeks to several months, depending on your lender’s procedures and workload.
Once your lender reviews your file, they may:
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Approve the short sale
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Make a counteroffer
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Deny the request
Your real estate professional and attorney can work closely with your lender’s loss mitigation department to help move things along efficiently.
🕒 Every short sale is unique — but I’ll be with you every step of the way, keeping the process organized and moving forward.
5. Understand the Financial Impact
Even with lender approval, a short sale may not completely erase your financial obligations. Be aware that:
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You may be asked to sign a promissory note for any remaining balance.
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Forgiven mortgage debt could be treated as taxable income.
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A short sale can affect your credit score, though typically less severely than a foreclosure or bankruptcy.
Always consult your real estate attorney and tax professional before proceeding, so you fully understand your rights and obligations.
Ready to Discuss Your Options?
If you’re facing a potential short sale or foreclosure, don’t go through it alone.
I have the experience, lender relationships, and compassion to help you make the best possible decisions.
Important Disclaimer
This information is provided for general educational purposes only and is not legal or financial advice. Laws and lender policies vary by state. For advice specific to your situation, please consult a qualified attorney or CPA.
