There are a few important distinctions between selling your home traditionally and selling your home through a short sale.

Your mortgage company is thoroughly involved in the selling process. The bank will review a host of documents and will need to agree to a short sale proposal. The proposal will consist of your hardship letter, proof of your hardship, a listing agreement, a sale agreement with a buyer, sample HUD-1, a CMA, bank statements, pay check stubs, tax returns, and other requested documents.

As a result of their involvement, the home will need to be listed for sale "As-Is" with the seller unable to make repairs. Also, all agreements must be submitted to the bank for approval. This takes time and so as a result, it may be a number of weeks to many months before a short sale is approved.

If the home has both a first and second mortgage, both will need to be negotiated independently, which may further delay the process.

All commissions and attorney's fees are set by the bank upon agreement of the short sale and are paid from their proceeds. The Seller will not receive any proceeds from the sale of the home.

What is a Short Sale

Qualifications for a Short Sale

The Short Sale Process

Cost of a Short Sale

Timeline of a Short Sale

Tax Implications of a Short Sale

Credit Implications of a Short Sale

Home Affordable Foreclosure Alternative (HAFA) Program

Promissory Notes

Short Sale Frequently Asked Questions

Documents for Sellers

Active-Duty Military: Avoid Foreclosure through the Soldiers and Sailors Act

Foreclosure Prevention Scams

Blog Posts on Short Sales