A guide to the CT Short Sale Process - Reid Real Estate Group
September 26, 2017

Confused about the short sale process? This quick guide will clear things up!

Short sales are a possible solution for when you owe more on your mortgage than your home is worth and need to sell anyway.

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

After qualifying the seller and setting the proper expectations, the home is listed for sale on the open market 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.

Once a buyer is secured, 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".

Couple shaking Realtors hand

This is the most critical part of the sale!

During this short sale approval process several things need to happen:

  1. We fully document the sellers situation to make a case for a "financial hardship".
  2. The lender will order a valuation of the property to establish its current market value.
  3. The lender will decide to approve, decline, or counter the sale based on the results of the above.

There is much more that happens behind the scenes during each of the above steps, and a full detail of all the variables involved in a short sale approval 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.

Many short sales simply never close for lack of proper handling, and your greatest odds of success rest with having the right help. Choose your agent wisely!


At successful conclusion, the short sale is approved, ideally with the lender agreeing to take less than what they are owed and fully forgiving the difference. A short sale approval letter follows.

Short sale approval letters generally expire in 30-45 days from the date of issuance, and at this point all parties move to close just like any other traditional sale.


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.

Minna Reid

Minna Reid is 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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