How to Qualify for a Short Sale in Florida: What Lenders Want

Posted on May 31, 2025October 12, 2026 by Jenny Zamora

Qualifying for a Short Sale in Florida

To qualify for a short sale, you must prove to your lender that you have a legitimate financial hardship, your home’s value is less than what you owe, and you submit a complete short sale package including hardship documentation, financials, and a buyer’s reasonable offer. Lender approval is required.

What Is a Short Sale?

A short sale happens when you sell your home for less than what’s owed on your mortgage and your lender agrees to accept the proceeds as full payoff. It’s a lender-negotiated alternative to foreclosure and can help preserve credit and reduce long-term financial damage.

What Lenders Look For (Core Requirements)

1. Demonstrable Financial Hardship

Lenders won’t approve a short sale unless you can show a true hardship — something beyond normal financial strain. Typical qualifying reasons include job loss, income reduction, divorce, medical bills, relocation, military service, or other unexpected financial burdens. You’ll need a detailed hardship letter explaining your circumstances and supporting documents (tax returns, pay stubs, bank statements).

2. Negative Equity

Your mortgage balance must be higher than your home’s current market value (negative equity). Lenders will order an appraisal or a BPO or ask your agent to supply comparable sales to justify the short sale price. If your home could sell for enough to cover the debt, the lender may refuse the short sale. :contentReference[oaicite:1]{index=1}

3. Complete Financial Documentation

Prepare a thorough package that includes:

Hardship letter
Last 2 years of tax returns
Recent pay stubs and bank statements
Monthly budget/expense worksheet
Proof of other assets/liabilities

These items help lenders verify your inability to continue payments.

4. A Qualified Buyer & Offer

Lenders won’t approve a short sale unless there’s an offer from a qualified buyer. Offers must be realistic (supported by comps) and backed by strong financing or proof of funds. This protects the lender’s interests that the home will actually sell.

5. Cooperation & Communication

You’ll need to stay engaged with the lender throughout — respond promptly to requests, provide additional docs if asked, and stay patient, as lenders take several months to review short sale packages.

Orlando & Florida Specific Considerations

Short sales in Central Florida come with market nuances. Orlando’s real estate market is dynamic, so pricing competitively and engaging qualified professionals helps your lender see demand at the proposed sale price. Seasonality can also impact how quickly offers come in.

Florida statutes sometimes influence deficiency judgments, meaning that lenders may waive rights to pursue you for the difference after a short sale if they agree in writing. Always verify this with your agent or attorney.

Step-by-Step Checklist

Step	What to Do
1	Contact your lender to discuss short sale eligibility
2	Write and document your hardship
3	Gather financials (taxes, income, assets)
4	Order appraisal/BPO
5	List property and find a qualified buyer
6	Submit short sale package to lender
7	Negotiate lender counteroffers
8	Close once approved

Pros & Cons of Short Sale vs. Foreclosure

Pros: Avoids foreclosure, potentially less damage to credit, more control over sale.
Cons: Long approval timeline, no guarantee of lender approval, complex documentation.

Common Mistakes & Pitfalls

Submitting incomplete financials
Pricing above market comps
Choosing buyers without solid financing
Failing to stay responsive to lender requests

FAQs About Short Sale Qualification

1. Do I need to be behind on payments to qualify?

Not always — but most lenders want to see delinquency or imminent default before considering a short sale. It varies by lender.

2. Can I short sale if my home isn’t underwater yet?

It’s rare. Lenders typically require negative equity for approval unless there’s overwhelming hardship.

3. How long does lender approval take?

Typically 3–6 months, but timelines vary by lender response and document completeness.

4. Will I still owe money after a short sale?

Potentially yes — unless the lender agrees to a deficiency waiver. Always get this in writing.

5. Can I buy another home after a short sale?

Yes, but there may be waiting periods for conventional or government loans depending on credit recovery.

6. Do I need an attorney?

Not required, but useful for reviewing deficiency waivers and legal protections.

7. Does a short sale hurt my credit?

Yes — but generally less than a foreclosure. The impact and recovery timeline vary.

8. Can I do a short sale on my own?

Lenders almost always require professional representation and MLS listing, so you’ll want an experienced agent.

Next Steps

If you’re thinking about pursuing a short sale or want to explore alternatives that might protect your financial future, connect with an expert Realtor and team that understands how to package your case for the best chances of lender approval.

Call Orlando Realty Consultants at 407-902-7750 to discuss your options and get personalized guidance — se habla español. When you’re ready, we connect you with the right market strategies and buyer pool to improve your short sale success. We’re not just agents; we’re partners you can rely on in Central Florida.

Looking for experienced Real estate agents in Orlando to help run the process? We’ve done this before and we’ll make sure your lender sees your case clearly.

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How to Successfully Negotiate a Short Sale in Today’s Market

Posted on April 11, 2025February 23, 2026 by Jenny Zamora

How to Negotiate a Short Sale in FL (Orlando Guidance)

To negotiate a short sale in FL, you must prove legitimate financial hardship, price the home realistically, submit a complete lender package, and respond quickly to bank requests and counteroffers. The goal is a written approval letter with acceptable terms (including deficiency language) so you can close without last-minute surprises.

If you’re in Orlando or anywhere in Central Florida, short sales can still work in today’s market, but they aren’t “set it and forget it.” The lender is the real decision-maker, and negotiation is what gets you from listing to approval.

What “Negotiating a Short Sale” Means in Florida

A short sale is when your lender agrees to accept less than the total amount owed on the mortgage so the home can be sold. Negotiation is the process of persuading the lender that your offer and terms are reasonable based on market value, your hardship, and the lender’s likely costs and risks if the home goes to foreclosure instead.

In Florida, negotiation matters even more because the approval letter details (timelines, fees, commissions, and deficiency language) can make or break your outcome.

Key Short Sale Concepts (Plain English)

Financial hardship: The reason you can’t keep the mortgage current. The lender expects documentation, not just a story. (See financial hardship resources.)
Loss mitigation: The lender department that reviews short sale files, modifications, and other workout options.
Short sale package: Your lender’s required set of documents (hardship letter, bank statements, pay stubs, tax returns, financial worksheet, etc.).
Net sheet: A breakdown showing what the lender will receive after closing costs and payoffs.
BPO/Appraisal: The lender’s valuation method (Broker Price Opinion or appraisal) used to decide if your offer is acceptable.
Deficiency: The difference between what you owe and what the lender receives. Whether it is waived or reserved depends on lender language and circumstances.

How Short Sale Negotiation Works (What Lenders Actually Want)

Here’s the reality: a lender approves a short sale when it believes the offer is credible and the short sale is cheaper, faster, or less risky than foreclosure. Your job is to make the file easy to approve by removing friction:

Complete documentation (no missing pages, no outdated statements)
Realistic pricing supported by local comps
Clean contract terms and a buyer who can perform
Fast responses to bank requests
Professional follow-up so the file doesn’t stall

Step-by-Step: How to Negotiate a Short Sale in FL

Step 1: Confirm You’re a Real Short Sale Candidate

Short sales usually make sense when you have limited options to cure the default or maintain the payment, and the home likely won’t sell for enough to pay off the loan(s). If you have multiple liens (first mortgage, second mortgage, HELOC), negotiation becomes more complex because everyone wants a piece of the proceeds.

Step 2: Build a Lender-Ready Hardship File

Your lender isn’t judging you as a person; it’s checking whether the hardship is legitimate and supported by documentation. A clean hardship file typically includes:

Hardship letter (brief, factual, consistent)
Recent bank statements (all pages)
Pay stubs or proof of income (or proof of unemployment/benefits if applicable)
Tax returns (as required)
Monthly budget/financial worksheet
Authorization letter so your agent can speak with the lender

Tip: Most delays happen because lenders request updated documents midstream. Keep your file “fresh” by updating statements and pay stubs quickly when requested.

Step 3: Price It Like You Want It Sold (Not Like You Want It to Be Worth)

Overpricing is one of the fastest ways to kill a short sale. In Orlando, buyers are value-sensitive and lenders rely heavily on local comps. Pricing should reflect:

Recent closed sales in the same neighborhood or a close substitute
Condition issues and repair estimates (with photos when possible)
Days on market and current competition
Any HOA restrictions or community factors affecting demand

If the property needs work, document it. Lenders can be stubborn, but they will respond to clear evidence.

Step 4: Put a Strong Offer Together (Lenders Prefer Certainty)

A lender is more likely to approve an offer that looks like it will actually close. The strongest short sale offers usually include:

Solid earnest money deposit
Proof of funds (cash) or a strong pre-approval (financed)
Reasonable inspection period (not open-ended)
Buyer flexibility on closing timeline

In today’s Central Florida market, well-priced homes can still attract multiple offers. That helps negotiation because it proves market value and reduces lender “what if” concerns.

Step 5: Submit a Complete Short Sale Package (Offer + Financials)

Negotiation typically doesn’t start until the lender has both:

A fully executed contract
A complete seller financial package

For a professional workflow reference, we align the transaction with the Realtor industry’s short sale process so nothing important gets missed.

Step 6: Prepare for the Lender’s Value Check (BPO/Appraisal)

After submission, many lenders order a BPO or appraisal. This step is crucial because the lender uses it to decide if your offer is “acceptable.” You can improve your odds by:

Providing accurate comps that reflect condition and location
Sharing repair estimates (roof, HVAC, plumbing, foundation, etc.)
Being present or available for the agent/appraiser if appropriate

In Orlando, small differences between neighborhoods can change value. A local agent’s comp support can matter here.

Step 7: Negotiate Terms, Not Just Price

Most people think negotiation is only about price. In Florida short sales, terms matter too. Lenders may negotiate or dictate:

Approved closing date window
Closing cost caps
Commission limits
Buyer credits (often restricted)
Repairs (usually “as-is”)
Deficiency or future collection language

Bottom line: The approval letter is the real contract. If something is not in writing, assume it’s not guaranteed.

Step 8: Don’t Let the File Die in a Queue (Follow-Up Wins)

Short sales stall when nobody drives the file forward. Consistent follow-up keeps it alive. A realistic approach includes:

Weekly lender status checks
Immediate responses to document requests
Escalation when timelines are at risk
Re-submission of updated documents when requested

This is where experienced short sale representation makes a difference: it’s not glamorous work, but it’s what gets approvals.

Step 9: Review the Approval Letter Like Your Future Depends on It

Because it does. The approval letter should clearly state:

Approved sale price and net to lender
Approved closing deadline
Allowed closing costs and fees
Commission details
Deficiency language (waived, reserved, or addressed)
Any additional seller requirements (contributions, promissory note, etc.)

If something looks off, you address it immediately. Waiting until closing week is how deals collapse.

Negotiation Checklist (Florida Short Sale)

Get lender authorization signed and submitted
Collect full hardship and financial package (all pages)
Price using Orlando-area comps and condition documentation
Secure a qualified buyer and clean contract terms
Submit complete short sale package (contract + financials + net sheet)
Support value with comps and repair estimates
Follow up weekly; respond to requests within 24–48 hours when possible
Negotiate approval letter terms and confirm deficiency language
Coordinate title, HOA, and lien resolution early

Short Sale Timeline in Orlando (Typical Range)

Every lender is different, but here’s a realistic timeline range for Central Florida:

Stage	What Happens	Typical Timeframe
Pre-list prep	Hardship docs, authorization, pricing strategy	3–14 days
Listing + offer	Market exposure, buyer screening, contract	1–6 weeks
Lender review	Package review, BPO/appraisal, internal approvals	6–16+ weeks
Approval to close	Final lender letter, title work, buyer financing	2–6 weeks

Tell-it-like-it-is: If you need an urgent sale in 2–3 weeks, a short sale may not match that deadline unless everything moves unusually fast.

Pros and Cons of a Florida Short Sale

Pros	Cons
Potentially avoid foreclosure and its long-term impact	Approval can take months and timelines can shift
More control than foreclosure (showings, offer selection)	Lender may counter or require stricter terms
Can resolve the situation with a defined exit plan	Deficiency risk depends on lender terms and case specifics
May allow relocation and fresh start sooner	Paperwork-heavy and requires ongoing follow-up

Common Mistakes (And How to Avoid Them)

Incomplete documents: Missing pages and outdated statements trigger delays and repeated requests.
Overpricing: If the lender’s valuation comes in lower, you’ll likely face a counter or rejection.
Weak buyer: Lenders prefer offers that look like they will close. Poor financing is a red flag.
Ignoring junior liens: Second mortgages/HELOCs can hold up approval if not negotiated early.
Not reading approval letter terms: The letter controls the deal. If terms aren’t acceptable, fix them before closing week.

How It Works in Orlando and Central Florida

Orlando-area short sales are heavily influenced by neighborhood-level comps, HOA requirements, and buyer expectations. In some Central Florida pockets, buyers move fast on well-priced homes; in others, condition and insurance costs can slow demand.

Local details that often matter in Orlando short sales:

HOA/condo approvals and estoppels: These can affect timelines and closing costs.
Investor activity: Some areas attract cash buyers, which can strengthen your “certainty to close.”
Condition reality: Older roofs, HVAC age, or plumbing issues can materially affect valuation and buyer financing.

If you want the negotiation handled by someone who does this in the Orlando market, work with a dedicated Orlando short sale agent instead of rolling the dice with someone who “kind of” knows the process.

FAQs: How to Negotiate a Short Sale in FL

1) Can I negotiate a short sale in Florida without being behind on payments?

Sometimes, yes. Some lenders will review a short sale if you can document hardship and show the situation is unsustainable. Many lenders, however, prioritize files that are already delinquent.

2) What documents do I need to negotiate a short sale in FL?

Common requirements include a hardship letter, bank statements (all pages), pay stubs or proof of income, tax returns (if required), a monthly budget, and a signed authorization form. Your lender may require additional forms.

3) How long does a Florida short sale negotiation take?

A realistic range is 60–180+ days after a complete package is submitted, depending on lender responsiveness, lien complexity, and valuation timing.

4) Will the bank counter my buyer’s offer?

Yes, it can. Counteroffers happen when the lender’s valuation comes in higher than the offer, or when the lender requires different terms to meet its net proceeds target.

5) Do I still owe money after a short sale in Florida?

It depends on lender terms and the approval letter language. This is why deficiency wording matters. You want clarity in writing before closing.

6) What’s the difference between a short sale and foreclosure in Florida?

A short sale is a negotiated sale with lender approval; foreclosure is a legal process where the lender takes the property (or forces a sale) due to default. Short sales usually provide more control and a clearer transition plan.

7) Can I negotiate a short sale if I have a second mortgage or HELOC?

Yes, but it’s more complex. Junior lienholders may need to accept a reduced payoff, and the first lender’s approval may depend on how those liens are resolved.

8) Should I accept the first offer on my Orlando short sale?

Not automatically. You want the strongest offer that is most likely to close, because lender approval takes time and weak buyers can waste months.

9) Can buyers back out of a Florida short sale?

Yes. Buyers can walk if timelines drag or terms change. That’s why buyer qualification and communication are huge in short sales.

10) Who should I hire to negotiate a short sale in Orlando?

You want an agent experienced with lender packages, follow-up, valuation disputes, and approval letter terms. For Central Florida help, call Orlando Realty Consultants at 407-902-7750 — se habla español.

Talk With Orlando Realty Consultants (Short Sale Help)

If you’re trying to figure out how to negotiate a short sale in FL and you want local Orlando guidance (not generic advice), call Orlando Realty Consultants at 407-902-7750. We serve Central Florida, and se habla español.

We’ll help you understand whether a short sale is realistic for your situation, what documents you’ll need, how to price it to attract buyers, and how to keep the lender process moving toward a written approval.

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7 Real Estate Tips for First-Time Investors

Posted on July 27, 2023July 27, 2023 by Jenny Zamora

As a seasoned real estate agent and investor, I understand the excitement and apprehension that come with being a new investor in the real estate market. Navigating the world of real estate can be a daunting task, but with the right guidance and a strategic approach, it can also be an immensely rewarding endeavor.

Finding a good investment property requires careful consideration, thorough research, and a clear understanding of your financial goals and risk tolerance.

Allow me to offer some valuable advice to help you get started in the right direction. I will help you make an informed decision and identify a good investment opportunity, something that aligns with your objectives.

1– First and foremost, it is crucial to define your investment strategy and objectives. Are you looking for a long-term rental property that generates passive income, a fix-and-flip opportunity for short-term gains, or perhaps a property that offers potential for appreciation over time?

Understanding your investment goals will serve as a guiding light throughout the process and help you filter through the multitude of options available in the market.

2– Next, location is paramount in real estate. Look for properties in areas that demonstrate strong economic growth, low crime rates, and proximity to amenities such as schools, parks, public transportation, shopping centers, and hospitals.

Consider the neighborhood’s potential for future development, as gentrification can significantly impact property values. Collaborating with a knowledgeable local real estate agent can provide invaluable insights into the most promising neighborhoods and emerging market trends.

3– Conduct thorough research on the property’s history and market value. Examine recent sales data of comparable properties (comps) to gain a realistic understanding of the property’s current market value. An experienced real estate agent can assist you in evaluating comps and determining whether the property is priced appropriately.

Additionally, research any potential zoning changes, planned infrastructure developments, or other factors that could influence the property’s value over time.

4– As an investor, it is essential to assess the property’s condition and potential for improvement. While a fixer-upper may offer a lower purchase price, it could entail additional renovation costs that may exceed your budget or expected return.

On the other hand, a well-maintained property with modern amenities might command a higher purchase price but require less immediate investment. Take into consideration your skills, resources, and willingness to take on renovation projects when evaluating properties.

5– Furthermore, don’t overlook the financial aspects of your investment. Secure pre-approval for a mortgage to establish your budget and demonstrate to sellers that you are a serious buyer. Calculate your potential return on investment (ROI) by factoring in not only the purchase price but also ongoing expenses like property taxes, insurance, maintenance costs, and property management fees if applicable.

The goal is to ensure the property’s revenue potential aligns with your financial expectations and long-term objectives.

Investing in real estate naturally involves some degree of risk, so it’s vital to have a contingency plan. Consider potential worst-case scenarios and how this might impact your finances. Diversifying your investment portfolio can also help mitigate risk; avoid putting all your resources into a single property. Instead, spread your investments across multiple properties or investment types to create a balanced and resilient portfolio.

6– In addition to conducting your own research, surround yourself with a team of professionals who can offer expert advice. An experienced real estate agent can be your most valuable asset, guiding you through the entire process, negotiating on your behalf, and leveraging their network to find hidden gems.

7– Finally, exercise patience and discipline throughout your search. The real estate market can be volatile, and it’s easy to succumb to the pressure of making a quick decision. Remember that finding the right investment property may take time, but it’s well worth the effort when you discover a gem that aligns perfectly with your goals.

In conclusion, as you venture into the world of real estate investment, keep in mind that knowledge, research, and prudent decision-making are the cornerstones of success. Define your investment strategy clearly, focus on location and property condition, and thoroughly assess the financial aspects before making any commitments.

With the guidance of a seasoned real estate agent and a well-rounded team of professionals, you’ll be better equipped to find that perfect investment property that will pave the way to a successful and rewarding investment journey.

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A wave of Short Sales could be headed for Orlando due to COVID-19

Posted on May 7, 2020May 10, 2022 by Jenny Zamora

While stay-at-home orders are keeping people at home, many Floridians could be falling behind on mortgage and rent payments due to loss of employment and an economy on a downward spiral.

The real estate data-service provider, Attom Data Solutions, reported that 10 of Florida’s 67 counties are in the top 50 most vulnerable counties in the U.S. to the economic impact of the COVID-19 pandemic. Most of these counties are in either North or Central Florida, including Osceola, Hernando, Flagler, Clay, Lake. Surprisingly, Broward county was the most vulnerable of the South Florida counties.

The only state that ranked higher than Florida in this study was New Jersey with 14 counties in the top 50 most at risk in the nation. Also ranked near the top were New York, Connecticut, and California. Real estate markets in the Midwest and West are considered to be less likely to see big numbers of people losing their homes because of the virus outbreak.

483 counties throughout the US were studied to determine what percentage of homes we can expect that will be receiving foreclosure notices by the end of 2020 and what percentage of the local wages are needed to pay for homeownership. The study used data from the last quarter of 2019 to calculate the averages.

Central Florida has one of the lowest median incomes in the U.S. The local economy is largely dependent on tourism and convention revenue which could mean big trouble for homeowners. Many landlords are suffering right now… especially if they depend on rental incomes to pay the mortgages.

Central Floridian homeowners could be facing rough waters ahead

Realtors in Orlando are also starting to feel the pain. Activity has slowed for both buyers and sellers with only people who have no choice but to buy or sell eager to close. Home sales in Orlando are reaching the levels that we saw back in 2008 after the market crash. Orlando Realtors are losing almost $700,000 in daily commissions from the pandemic.

Right now it’s too early to say how this will all play out because we don’t know how effective the Federal stimulus will be in helping people through this financial rough patch. Banks are granting temporary mortgage forbearance to many homeowners and businesses will hopefully get enough help to pay employees through the crisis.

I believe lenders will have to step up and provide some major help to prevent foreclosures in Orlando and other Florida cities. In my opinion, it’s the only way to avoid large numbers of foreclosures and short sales in Orlando.

Potential for Mass Short Sales in Orlando

Like I said before, it’s too early to tell what will happen to Orlando real estate market as a result of coronavirus. However, I do think that if people don’t get back to work in the next couple of months, short sale Realtors in Orlando will be extremely busy by the end of 2020 and well into 2021.

Even lenders aren’t sure how everything will end up playing out because they don’t know how much time it will take for Floridians to get back to work. Short sales and loan modifications are used as an alternative to avoid foreclosure. The problem with loan modifications is that the homeowner will still be on the hook for the entire amount of the loan but with lower payments.

I’ve been a short sale Realtor in Orlando since 2004 and 9 out of 10 times when I present my clients with the terms of both a short sale and a loan modification, they choose short sale.

Doing a short sale, however, will allow the homeowner to sell the home for less than what’s owed on the mortgage. By doing this, the lender gets at least most of their money back and avoids a lengthy and expensive foreclosure process. The homeowner also benefits from a short because they can avoid having a foreclosure on their record and won’t be responsible for the difference between what they owed and what the home sold for.

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Orlando Short Sale Process: Get Rid of Mortgage Issues for Good

Posted on October 4, 2018May 10, 2022 by Jenny Zamora

The Orlando Short Sale Process for Sellers Step by Step

I’ve been an Orlando short sale realtor since 2004 and although there have been changes in rules and regulations, etc., the short sale process for sellers has pretty much remained the same. Going through the short sale process can be intimidating, to say the least. However, by getting a handle on it from the start you’ll have a big advantage.

Why Consider A Short Sale?

A short sale is when a homeowner sells their property for an amount that is less than what they owe on their mortgage. A short sale is often the last resort for people who have exhausted all other options to save their homes and avoid foreclosure.

If you want to keep your home try a loan modification first. Speak with your lender about your situation. You may qualify for a loan modification and avoid having to sell it at all. A loan modification is exactly what it sounds like… it’s when a lender adjusts the terms of your mortgage making the payments more affordable so that you can keep your home.

The Home Affordable Modification Program aka [HAMP] is a program by the US Department of Housing and Urban Development and is a good place to start. Homeowners who qualify for HAMP are put on a 3 month trial period. Those who it through will be approved at the new payment avoiding foreclosure.

If a loan modification is just not an option pursuing a short sale would be the next step. When you speak to your lender about doing a short sale, do it sooner than later and don’t wait until you’ve already missed several mortgage payments. A short sale means that you are attempting to sell your home for less than what you owe on your mortgage which means your lender needs to sign off on it.

What’s A Short Sale Package?

Lenders have a set of rules or qualifications that need to be met before getting approved for a short sale. Although they may vary a bit, all lenders pretty much have the same requirements for their short sale packet.

The lender will require the homeowner to submit any documentation which proves they are going through a financial hardship and truly cannot continue to make the mortgage payments. These documents will include bank statements, pay stubs, financial statements, asset disclosures, and of course a hardship letter. A hardship letter is a letter written by the homeowner explaining in detail why they can no longer continue making their mortgage payment.

Hiring a Short Sale Agent

Speak with an Orlando short sale expert. A short sale can only be completed by a real estate agent so make sure you hire an agent with a lot of experience in the short sale arena to represent you. The best way to find a short sale agent in your area is to do a Google search using terms like “Orlando short sale expert” or “short sale realtor” and interview at least three of the agents that appear on the first page.

Once you’ve chosen the agent that will represent you, they will then put the short sale package together for the bank as well as determine a listing price that the lender agrees with.

Listing your property as a short sale is a next step in the process. The lender requires the home to be listed on the MLS at fair market value.

Once there’s an interested buyer, the offer should be submitted to the lender. Once the lender has reviewed the offer, there will almost certainly be some further negotiating between your short sale agent and the potential buyer before a price is agreed upon by all parties.

Short Sales are anything but Short

It’s important to be aware that short sales are anything but short. It can take several months for a short sale to be approved by the lender.

Make sure your agent finds out from the lender if there are any “cash for keys” incentives available to you. This is when the lender gives the seller money back at the closing to help with relocation costs. If you were able to qualify for HAFA for instance, you will receive $3,000 upon closing the deal.

If all goes well and the lender approves the buyer, the deal closes and all is good with the world. You move out [hopefully with a few thousand in your pocket] and the buyer moves in.

When can I Buy another Home?

The next question you have is probably… “how long before I can buy another home?”…

There is no black and white answer to this question. A short sale will surely affect your credit but not nearly as bad as a foreclosure will. Also, the IRS may treat the forgiven debt as taxable income. This means you may end up owing some money to Uncle Sam.

There’s no denying that short sales are a great option for a homeowner facing foreclosure. Firstly, It helps the seller avoid foreclosure and eliminate their debt. Also, the seller can stay in the home without making payments while the process is happening.

We’ve tracked some of our clients after a completed short sale. Homeowners can usually get a conventional loan after four years. Again, this is still much better than having a foreclosure on your record. A foreclosure can prevent you from getting another mortgage for up to seven years.

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