26 · Ask Andrew · Selling
What is a short sale?
A straight answer on what a short sale is, how the lender approval process works, and the honest tradeoffs for your credit and taxes.
The short answer
A short sale happens when a home sells for less than the total balance owed on the loans against it, and the lender agrees to accept less than the full payoff as settlement. It is a real option for sellers in genuine financial distress, but the lender runs the process, approval is never guaranteed, and the timeline is slower than a standard sale.
How the process works
The home is priced and marketed like any other sale, an offer is negotiated, and then the short payoff request is submitted to the lender. The lender reviews the sale price, the debt, and the seller's financial situation before deciding. Because of that review, the lender governs the timeline and the outcome is never certain.
Who it is for
Sellers whose loan balance exceeds what the home can realistically sell for, who cannot or should not carry the difference, and who want an orderly path out rather than a foreclosure timeline. A short sale requires genuine financial distress to qualify, and the lender runs the process.
The tradeoffs
Lender approval is required and is never guaranteed, and the lender may reject the price. The process is slower than a standard sale, and a short sale can affect your credit and carry tax consequences. We are Realtors, not lenders, attorneys, or tax professionals, and we will point you to the people who can answer those parts honestly.
Where to start
Talk to your lender about the alternatives first, including modification or forbearance programs, and consult a housing counselor, an attorney, and a tax advisor about the consequences before you commit. If a short sale is the right fit, begin with complete documentation and realistic expectations about time and approval risk.
Next step
Start with an honest assessment of the process.
We will walk you through what a short sale would involve in your situation, the lender requirements, and the professionals you should consult. No guarantees, no pressure.
- Phone
- 623-400-5957
- andrew@clearlysold.com