A short sale happens when you sell your home for less than what you owe on your mortgage — but only with your lender’s approval. It can be a good option if you can’t afford your payments and don’t want to go through foreclosure.

1. When is a Short Sale a Good Option?

• If your mortgage balance is higher than your home’s value.
• If you can no longer afford your monthly payments.
• If you want to avoid the damaging effects of foreclosure on your credit.

👉 Learn more from Fannie Mae – Short Sale Information.

2. How Does the Process Work?

• You work with your lender to get approval.
• You list your home (sometimes with agent oversight).
• Once a buyer is found, the lender must approve the sale price before closing.

3. Pros and Cons

Pros: Avoid foreclosure, less impact on credit, possible relocation assistance.
Cons: Takes time, requires lender approval, won’t profit if home sells below mortgage balance.

4. How List First Can Help

We can connect you with agents experienced in short sales or explore whether a direct purchase is a faster, simpler solution.

Additional Resources

• Fannie Mae – Short Sale Options
• Freddie Mac – Short Sale Info
• HUD Housing Counselors