FAQ's

A short sale occurs when the lender agrees to accept less than the full mortgage payoff to avoid the expense of foreclosure. It's a strategic option when the home's value is below the loan balance

Typically, borrowers must demonstrate:

Lack of affordability of current mortgage payments

Little or no home equity

Financial hardship (e.g., job loss, divorce, medical bills)
Lenders may consider underwater properties even if payments are current

Not always—but most lenders require proof of hardship and often prefer the borrower be 60–90 days delinquent

Expect hardship letters, bank statements, income documents, expense worksheets, the purchase contract, and lender-specific short sale forms (UBAF, RMA, etc.)

Typically 60–90 days, though complex situations with liens or imminent foreclosure may extend the timeline

It's less damaging than foreclosure—marked “settled for less than full balance” and stays on credit for roughly 3–5 years versus 7 for foreclosure

A rejected offer provides insight into the lender’s acceptable price, helping you adjust and re-list the property to eventually close the deal