Owe more than your house is worth? A short sale may be an option.

Is this me?

You owe more than the home would sell for. A hardship (job loss, medical bills, divorce, a death in the family) made the payment hard to keep up. You want to move on without a foreclosure on your record.

How a short sale works

The lender has to approve the sale price. You'll typically provide a hardship letter, income and bank information, and a listing or purchase contract. The lender reviews it, may counter, and must sign off before closing. It takes patience: weeks to months.

Short sale vs. foreclosure

Both affect credit, but they're generally viewed differently. Many sellers find a completed short sale easier to recover from than a foreclosure, including when they want a mortgage again later. Ask the lender whether any remaining balance (the 'deficiency') will be waived, and talk with a CPA about possible tax effects.

Your options

Reinstate (pay what's past due), arrange a repayment plan or loan modification with your lender, refinance, sell (traditionally, as a short sale, or directly to a buyer like us), or a deed-in-lieu. A free HUD-approved housing counselor can help you compare them.

General educational information, not legal, tax, or financial advice. Consult a licensed attorney, CPA, or HUD-approved housing counselor about your situation.