September 26, 2017

ct short sale process

Short sales are a possible solution for when you owe more on your mortgage than your home is worth and need to sell anyway. Get the scoop on the CT short sale process!

All short sales vary a little bit by lender, investor and the seller’s situation, but the CT short sale process generally follows the same basic 5 step process:



Seller Consultation

This is the first and most important part of the short sale process. To determine whether a seller will qualify for a short sale we discuss some basics:

  • Sellers goals and circumstances
  • Sellers financial situation
  • Lender(s) involved
  • Other liens, if any

From here, we can determine whether a short sale is a viable option to move forward. If so, an appointment will be set to view the home to determine it’s value, and to cover the process in more detail.


Get the Home on Market

After setting the proper expectations and prepping the home for market, the home is listed for sale on the open market and fully marketed like any other home. The property will be priced to market value, photographed and advertised, and buyers will come to view the property. The only difference so far is that buyers will need to be aware that a sale of said property will be subject to short sale approval which may take a few months.


Secure a Buyer

Once agreement has been reached with a buyer, the property goes under contract and short sale negotiations with the lender begin. The bank holding the mortgage must agree to take a loss so that the owner can "sell short". 


Get Short Sale Approval

During this short sale approval process several things need to happen successfully. To (greatly) summarize:

  • We fully document the sellers situation to make a case for a "financial hardship"
  • The lender orders a valuation of the property to establish its current market value.
  • The lender(s) will decide to approve, decline, or counter the sale based on the results of the above, which generally leads to more negotiations over the terms of the approval.

Once all terms of approval have been negotiated to satisfaction, the lender(s) issue a detailed approval letter.



Short sale approval letters generally expire in 30-45 days from the date of issuance, so at this point in time all parties should be prepared to close swiftly.

This is meant to serve as a guide only, as a full detail of all the variables involved in a short sale cannot be addressed by this post alone. It is absolutely critical that the party handling the short sale with the lender is highly experienced in the process.

short sale FAQ

Minna and her staff were amazing to work with. They expertly navigated me through my recent short sale with tremendous success - the outcome far exceeded my expectations. Minna came out of her way to work with me in Fairfield County and provided exceptional service from start to finish. I highly recommend her and her staff if you're considering a short sale. I understand why she's the #1 short sale realtor in CT.

Last Updated on December 26, 2023 by Minna Reid

About the author 

Minna Reid

Minna Reid is The Broker - Owner of Reid Real Estate Group. Reid Real Estate Group is a full-service Connecticut residential real estate brokerage, specializing in helping homeowners with legal and financial challenges including short sales, probate sales and tax lien complications.

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