What Is a Short Sale and How Can It Help?
A short sale is a real estate transaction in which a homeowner sells their property for less than the amount they owe on their mortgage — with the lender’s approval.
​This typically happens when the homeowner is experiencing a financial hardship, such as job loss, divorce, medical bills, or other life changes, and can no longer afford their mortgage payments. In a short sale, the lender agrees to accept less than the full balance owed on the loan, allowing the property to be sold and the foreclosure process to be avoided.​ Short sales are often seen as a win-win alternative to foreclosure. For homeowners, it’s an opportunity to move on from a home they can no longer afford without the devastating impact of a foreclosure on their credit. While a short sale does affect your credit, it is usually less damaging and easier to recover from than a foreclosure. In many cases, homeowners who complete a short sale can qualify to purchase another home within two to three years — compared to seven or more years after a foreclosure.
The process begins by listing your home with a real estate agent, receiving an offer from a buyer, and submitting that offer along with financial documentation to your lender. If approved, the sale moves forward like a traditional real estate transaction, except the lender ultimately determines whether to accept the offer. Many lenders today prefer short sales over foreclosures because they reduce the financial burden and legal costs involved in repossessing a home.
​
For homeowners who feel overwhelmed, stuck, or unsure of what to do, a short sale offers a path forward — with dignity, control, and a chance to start fresh. As someone who has personally been through the foreclosure process with my own family, I understand the stress and fear that come with falling behind on payments. That’s why I specialize in helping people navigate the short sale process with compassion, clarity, and no pressure.
Is A Short Sale Right For You?
Short sales aren’t the right solution for everyone, but if you’re facing financial hardship and worried about foreclosure, it could be a powerful way to protect your future. The key is acting early and working with someone who can guide you through the process. You might be a good candidate for a short sale if:
​
➜ You owe more on your mortgage than your home is currently worth.
âžœ You’ve fallen behind on mortgage payments or are at risk of doing so.
âžœ You’re experiencing financial hardship such as job loss, medical bills, divorce, or rising living expenses.
âžœ You want to avoid foreclosure, bankruptcy, or a sheriff’s sale on your record.
➜ You are willing to work with your lender to find a solution but need an experienced guide to help you.
​Remember: A short sale is a dignified alternative to foreclosure that can help you walk away with less credit damage and the ability to rebuild faster. Every homeowner's situation is different. If you’re unsure whether a short sale is right for you, reach out today for a free, confidential consultation. We’ll review your situation together; no pressure, no judgment — and help you explore the best path forward.​​​
How the Short Sale Process Works?
If you're considering a short sale, understanding the process can help you feel more confident and prepared. While every situation is unique, here’s a general overview of how a short sale typically works from start to finish:
Free Consultation
We start with a simple, confidential conversation to review your situation and discuss your options. There’s no cost and no obligation.
Gathering Documentation
Your lender will require certain paperwork, including proof of financial hardship, income information, and a hardship letter. I’ll walk you through exactly what’s needed and help you put everything together.
.png)
Listing Your Home
We’ll list your property just like a traditional sale, marketing it to buyers and agents to get the best possible offer. There’s no cost to you.
Receiving an Offer
Once we get an offer from a qualified buyer, I’ll present it to you and, with your approval, submit it to your lender for review.
Lender Review and Approval
The lender will review the offer, your financial documents, and the value of the property. This step can take several weeks, but I’ll handle the communication and negotiation to keep things moving.
Closing the Sale
Once the lender approves the offer, we move to closing — and you walk away from the home without a foreclosure on your record.
Throughout every step, my team and I will be by your side — answering your questions, negotiating with your lender, and helping you protect your future.
253,306
Homeowners Received A Notice of Default Last Year.
11.03%​
Of FHA Mortgages Are Delinquent
63%
Of Homeowners in Foreclosure Aren't Aware Of Their Options.
125-165 Point
Average Hit To a Person's Credit Score From Foreclosure.
How does a Short Sale Affect Your Credit?
One of the biggest reasons homeowners choose a short sale over foreclosure is the impact on their credit and financial future. While both a short sale and a foreclosure will lower your credit score, a short sale is generally far less damaging. Here's the difference:
​
Short Sale:
Completing a short sale typically lowers your credit score by about 50–100 points. Most people can recover their credit score and even qualify for a new mortgage in 2 to 3 years.
​Foreclosure:
Going through foreclosure can lower your credit score by 100–160 points or more. It also stays on your credit report for 7 years and makes qualifying for future home loans, credit cards, and even rental housing much more difficult.​
​​​
Another important difference:
A short sale shows lenders and future creditors that you took responsibility, worked with your lender, and found a solution — instead of simply walking away. Choosing a short sale can help you minimize credit damage, shorten your financial recovery time, and move toward a fresh start with dignity.