The basics
A short sale is when you sell your home for less than you owe on your mortgage, and your lender agrees to accept the sale proceeds. The lender must approve the sale, and approval is up to them.
How long does it take?
A typical short sale takes about 2 to 6 months, depending on your lender, how many loans are on the property, and how quickly documents are gathered.
Who pays the commission?
In most short sales, the lender pays the real estate commission out of the sale proceeds. We charge no upfront fees: we're paid at closing, typically by the lender.
Short sale vs. foreclosure
| Short sale | Foreclosure | |
|---|---|---|
| Who controls the sale | You, with your agent | The lender |
| Credit impact | Usually less severe | Usually more severe |
| Timing of your move | More predictable | Set by the lender's process |
| Future home purchase | Often possible sooner | Often a longer wait |
Every situation is different; results depend on your lender and circumstances.
Other options to consider
- Loan modification: your lender changes the terms of your loan to make payments more affordable.
- Forbearance: a temporary pause or reduction in payments during a hardship.
- Deed in lieu of foreclosure: you voluntarily transfer the home to the lender.
We'll help you think through whether a short sale makes sense, and we'll tell you if another path may fit better. A HUD-approved housing counselor can also help at no cost.