Short Sales
What is a short sale?
A short sale is a home sale where the lender agrees to accept less than the full loan balance. The lender must approve the buyer's offer before closing. Short sales are most common when a homeowner has a real financial hardship and the home is worth less than the mortgage.
Who Usually Qualifies
Lenders generally look for three things
A hardship
Job loss, reduced income, divorce, medical bills, a death in the family, or a required move.
Negative equity
The home is worth less than what is owed on it.
Limited ability to pay
Your income and assets show you cannot catch up on the loan.
Every lender and loan type (conventional, FHA, VA) has its own rules, so we confirm the requirements with your lender early.
Your Hardship Package
What your lender will ask for
- A hardship letter in your own words
- Recent pay stubs or proof of income
- Two months of bank statements
- Two years of tax returns
- A financial worksheet listing income and monthly expenses
- A signed authorization so we can speak with the lender
We give you a checklist and help you organize everything before it is submitted.
The Process
The short sale process, step by step
- STEP 1
Consultation
We review your situation and what the home could sell for.
- STEP 2
Hardship package
We help you gather the documents your lender requires.
- STEP 3
List and accept an offer
We market the home and negotiate with buyers.
- STEP 4
Submit to the lender
The offer and package go to every lien holder.
- STEP 5
Lender review
The lender orders a valuation and reviews the file.
- STEP 6
Approval letter
We follow up until there is a written decision.
- STEP 7
Closing
You close and move forward.
Approval timelines vary by lender. Some move in weeks; others take several months. Starting before a foreclosure sale date is set gives you the most room.
Important
Read the approval letter carefully
In Florida, how a lender treats any remaining balance after a short sale matters a great deal. Florida courts have held that the one-year deadline that limits deficiency claims after a foreclosure sale does not apply to a short sale, so a lender may have longer to pursue a shortfall. Look for language that waives the deficiency, and have a Florida real estate attorney review the approval letter before you sign.
Forgiven mortgage debt may also be reported to the IRS on Form 1099-C and may count as taxable income. Talk to a CPA about your situation before closing.
Short Sale FAQ
Straight answers
Will a short sale hurt my credit?
Yes, but credit reporting and the waiting period before your next mortgage depend on the loan program and your history. Ask a mortgage lender about your specific case.
Can I stay in the home during the short sale?
In most cases, yes, until closing.
Who pays the real estate commission?
In most approved short sales, the commission is paid from the sale proceeds as approved by the lender, not out of your pocket. We do not charge upfront fees.
What if I have a second mortgage or HOA dues?
Every lien holder must agree to the sale. We work with all of them as part of the process.
Can I still owe money after a short sale in Florida?
Possibly. Unless the approval letter waives the deficiency, a lender may be able to pursue the remaining balance. Have a Florida attorney review the letter before you sign.
Request a Confidential Consultation
Tell us a little about your situation. Everything you share stays private. No cost, no obligation, no upfront fees. Se habla español. We are not attorneys or tax advisors and do not provide legal or tax advice.
Our team of professionals will be with you every step of the way, from preparing your home for the sale, to handing the keys to the new buyer.
Jennifer Gomez is a licensed Florida real estate Broker Associate with LPT Realty. CDPE® is a designation of the Real Estate Advancement Institute. Information on this page is general and not legal, tax or financial advice. Results depend on your lender and your situation; no outcome is guaranteed. Consult a Florida attorney and a tax professional about your specific situation.