Short sales
A short sale lets a homeowner sell for less than what is owed when the lender agrees to accept the payoff. I was one of the first agents in this area doing short sales after the 2008 crash, and I will tell you plainly whether one is the right move for your situation, then handle every step of it.
The basics
A short sale happens when the amount owed on the mortgage is more than what the home can sell for, and the lender agrees to accept the sale price as payment in full. The lender takes less than it is owed, which is why the sale is called "short."
Lenders do not approve short sales out of kindness. They approve them because a negotiated sale usually costs them less than a foreclosure, which drags on for months and almost always sells for less. Your hardship needs to be real and documented, and the offer needs to be at true market value. That is the whole game, and it is a game of paperwork, patience, and negotiation.
The most important difference
In a foreclosure, the lender takes the home from you. In a short sale, you sell the home yourself with the lender's permission. One is a rescue, the other is a repossession.
A sale, not a seizure
You stay in control of the sale and the timeline, with the lender's approval.
The process
From listing to offer to lender approval, this is exactly what happens, in the order it happens, and how long each part usually takes.
We start with the truth: what you owe, what the home is worth today, and whether a short sale is even on the table. I review the mortgage statements, the lien situation, and your hardship, and I tell you plainly what your options are.
Lenders approve based on paperwork. I help you put together the hardship letter, financial statements, income documentation, and the listing paperwork that loss mitigation actually asks for, so nothing stalls in review.
A short sale only closes when a real buyer makes a real offer. I price the home at current market value, market it the same way I market every listing, and bring in offers the lender cannot ignore.
Buyers do need patience here: the lender holds the final yes. I negotiate offers with the lender's approval target in mind and keep buyers informed so the deal survives the wait.
This is where experience matters. I work directly with loss mitigation, answer their questions, submit the requested documents, and negotiate the approved payoff and terms so the sale can close.
Once the lender signs off, the sale moves to normal escrow. I oversee inspections, title, and the closing details, and make sure the homeowner understands every page before they sign.
The timeline
The honest answer to "how long does a short sale take?" is that it depends on the lender. The most common shape of a successful short sale looks like this.
The first weeks
We gather the payoff figures, value the home, and assemble the short sale package while payments are still current if at all possible.
A few weeks to a few months
The home is listed at market value and marketed to bring in a legitimate offer the lender can approve.
Often 30 to 90 days
Loss mitigation reviews the package, orders its own valuation, and negotiates the payoff. I manage every document request.
Weeks after sign-off
Once the lender approves, the deal moves into a normal escrow and closes like any other sale.
Every lender is different, and some files move faster or slower. The buyers in the deal need to know this going in, which is exactly why I set expectations on day one instead of crossing my fingers.
Pros and cons
A short sale is a serious decision for a seller and a patient one for a buyer. Here is the complete picture, so nobody is surprised later.
For sellers
The honest trade-offs
For buyers
The honest trade-offs
Myths and facts
There is more misinformation about short sales than almost any other part of real estate. Here are the six myths I correct most often.
Fact A foreclosure is a legal process where the lender takes the property at auction. A short sale is a negotiated sale where the lender agrees to accept less than the full balance. It is a huge difference for your record, your timeline, and your ability to move forward.
Fact Lender review alone commonly takes 30 to 90 days, and the full process often runs a few months. Anyone who promises a fast short sale has not done many of them.
Fact Whether the lender can pursue the shortfall depends on your loan type, the lien position, and state law. In California, purchase-money first mortgages often carry more protection, but every situation is different. We review yours before you commit to anything.
Fact Lenders approve short sales all the time when the hardship is documented and the offer is a fair market price. The approval is an arithmetic decision, and it is my job to make the numbers work.
Fact They happen in every market, including the higher-priced North Bay, when a homeowner's life changes: job loss, divorce, medical bills, or a death in the family. The home can be beautiful and the neighborhood strong; the mortgage is simply too heavy.
Fact Yes, a short sale impacts credit, and you should be honest about that. But it is typically a smaller, shorter hit than a foreclosure, and many people rebuild credit in a few years. Waiting and doing nothing is what turns a hard situation into a worse one.
My experience
After the 2008 market crash, I was one of the first agents in this area doing short sales, at a time when most agents would not touch them. Those years taught me the process inside and out: how lenders underwrite hardship packages, what loss mitigation departments actually need, and how a deal gets pushed to approval instead of dying in a pile of paperwork.
That hard-won experience is exactly what I bring to every distressed situation today. I have seen how heartbreaking it is to watch a family lose a home, and I know that with the right process, many of those families do not have to lose anything.
If you are behind on payments, falling behind, or facing foreclosure, the worst thing you can do is wait. Every week of silence narrows your options. A conversation costs you nothing and could change the outcome.
Everything you tell me stays confidential. I work for you, not for the bank, and I will never pressure you into a decision.
If you are behind, falling behind, or facing foreclosure, the best day to act was months ago. The second best day is today. Call or send a note, and I will lay out your real options, honestly and without pressure.
Prefer to talk now? Call or text (415) 328-2637 or email pjschardt@gmail.com. I answer quickly, day or night.
Short sales involve lender approval, tax, and legal consequences. I am a real estate agent, not an attorney or tax advisor, so I strongly recommend you also consult with a qualified attorney, CPA, and your lender about your specific situation. California DRE 01702383.
