What is a short sale?
Do you owe more than your home is worth but need to sell anyway? A short sale may be the answer! When it comes to real estate, a short sale is the process by which your home is sold for less than is owed on the mortgage(s) to the property.
FREE SHORT SALE SURVIVAL GUIDE!
A STEP BY STEP MANUAL FOR GETTING THROUGH THE SHORT SALE PROCESS!
How do short sales work?
Your home is listed on the open market at market value and a buyer is secured. The sale's completion will be "subject to short sale approval".
Once under contract, a documentation and negotiation process with the lender follows, where the lender determines:
- The seller has a financial hardship,
- The property debts exceed its value.
- It is in the lender's best interest to allow the home to sell and accept a short payoff.
The short sale is approved and the property moves forward to closing as in any other sale, with sellers being forgiven the excess mortgage debt. Some sellers even receive relocation incentives.
FIND OUT IF YOU QUALIFY FOR A SHORT SALE!
Last Updated on February 16, 2026 by Minna Reid