A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency. (Wikipedia)

We have experienced many short sales in this market and have realized that the majority of lenders are willing to accept a short sale. Many homeowners who can no longer afford their monthly payment need to realize that if they can procure a ready, willing and able buyer, who will pay current market value, have an excellent chance to get out from being “under water”.

We employ a real estate attorney to negotiate and represent the seller with all aspects of the short sale. This includes submittion of package to lender, discussions/negotiating toward a short sale approval and all other matters regarding the title or other subordinate liens on the property.

All sellers must follow these short sale guidlines:

1. As the Seller, you will not be allowed to receive any proceeds from the sale of the property.

2. Once the sales agreement has been executed, the Lender will not allow for any revisions due to inspection issues or property defects. The Property will be sold “AS IS”.

3. Any sales agreement entered into, between Buyer and Seller, will be subject to final approval by the Lender and all expenses incurred in reliance upon the Seller’s acceptance of the contract are done so at the Buyer’s peril.

4. Upon acceptance by the Lender, a closing date will be established by the Lender. This date is non-negotiable and shall be deemed TIME IS OF THE ESSENCE.

5. If the final approved sales contract provides for a closing cost credit between Buyer and Seller, any excess monies not utilized by the applicable closing costs cannot be returned to Buyer, as they will be included as part of the short sale proceeds.

6. In certain instances, the Lender may require repayment of some or all of the deficiency in the form of an unsecured promissory note to be signed by Seller.

7. In the event the Lender accepts the short sale proceeds as payment in full for its loan, Seller acknowledges that they may be responsible for taxes owed on the amount of the debt forgiven by the Lender.



Documents for completed short sale package:

(required from all listed on mortgage)


From Homeowner:

  • last 2 years tax returns (Federal 1040's and schedules)
  • last 2 months bank statements
  • last 3 pay stubs
  • hardship letter requesting short sale with explanation
  • completed financial form
  • authorization letter allowing us to speak to lender
  • statement or coupon for lender(s)
  • any notifications received from the lender
  • water meter reading
  • tax bill
  • purchase and sales contract -subject to Lender's approval
  • listing agreement
  • buyer's approval letter

Please contact us to schedule a confidential meeting to discuss all of your options.