Short sale basics

A short sale happens when you sell real estate for less than the total amount owed on the mortgage—and the lender (or servicer acting for the investor) agrees to accept those sale proceeds to release the lien. It is neither automatic nor guaranteed; investors publish guidelines that loss-mitigation teams follow when reviewing your package.

Why lenders sometimes approve

Approval usually compares the net cash at closing against the lender’s estimate of what they might recover after foreclosure costs, timelines, and credit loss. You will still need a willing buyer, clear title work, and often cooperation from junior lienholders.

How this hub is organized

Use the related guides below to go deeper on definitions, timelines, and how short sales contrast with other workouts. When you are ready to organize your own facts, the Short-Sale.com assistant can walk you through them step by step.