Who usually qualifies
- You owe more than the home will sell for after costs (you're "underwater").
- You're behind on payments, or about to be. Most lenders won't approve a short sale while you're current.
- A real hardship: job loss, lower income, divorce, medical bills, a death in the family, relocation.
How a short sale works: 6 steps
- Free consultation: we review your loans, liens and timeline.
- List at market value: priced where the lender's appraisal is likely to land, not at what you owe.
- Accept an offer, subject to lender approval.
- Lender package: authorization, the contract, a settlement statement, your financial documents and a hardship letter.
- Lender review: usually 4–10 weeks, including an appraisal of the home.
- Approval and closing: once the lender approves in writing, closing usually happens within 20–30 days.
What the lender looks at
You
Your income, expenses and bank statements, to confirm you can't keep paying or bring cash to closing.
The home
Their own appraisal or broker opinion of value.
The offer
Whether the net to them beats what they'd likely get from foreclosure.
Things to know before you start
- Every lien holder (second mortgage, HELOC, HOA, judgments) has to agree to release their lien. Some, like certain tax liens, are hard to clear.
- Short sales are sold as-is. The seller doesn't pay for repairs.
- Usually you can't receive money from the sale or rent the home back, though some lenders offer relocation money depending on loan type.
- Ask the lender to state in writing whether it waives the remaining balance (the "deficiency"). Have an attorney read the approval letter.
Common questions
How long does a short sale take in Colorado?
Lender review usually takes 4–10 weeks once a complete package is submitted. From listing to closing, many short sales take a few months.
Do I get any money from a short sale?
Usually not from the sale proceeds. Some loan programs offer relocation assistance in certain situations; it depends on your loan type and lender.
Can I stay in my home during a short sale?
Yes, until closing. You must be moved out by closing; short sale lenders generally don't allow rent-backs.
Do I still owe the difference after a short sale?
It depends on your lender and your approval letter. Many approvals release the remaining debt, but some lenders, second mortgages and HELOCs may not. Get it in writing and have an attorney review it.
Talk it through with a real person, free
A free, confidential 30-minute consultation. We'll look at your loans, your timeline and your goals, and lay out every option, even the ones that don't involve us. English or Polish.