General education. Verify dates with your servicer, court, or attorney.
Foreclosure.how

When sale proceeds may not cover the debt

Short sale

A short sale requires the mortgage holder or servicer to approve a sale for less than the amount owed. Approval, deficiency treatment, timing, and tax consequences require careful review.

Approval is not just the sale price

  • Ask what happens to any remaining balance or deficiency.
  • Identify every mortgage, judgment, tax lien, or association lien.
  • Ask whether relocation assistance is available and what conditions apply.
  • Do not assume listing the property pauses foreclosure.

Build the right team

  • Use a real-estate professional with documented short-sale experience.
  • Ask a qualified attorney about liability and state law.
  • Ask a tax professional about possible tax consequences.