A short sale is a real estate transaction in which the sale price of a property is less than the outstanding mortgage balance, and the lender agrees to accept the proceeds as full satisfaction of the debt. Short sales are typically pursued by homeowners who are facing financial hardship and can no longer afford their mortgage payments.

If you want to short sale your house with the help of a realtor, here are the steps to follow:
  1. Choose a Realtor with Short Sale Experience: Look for a real estate agent or broker who has experience with short sales. Short sales involve complex negotiations with lenders, so having a knowledgeable realtor is crucial.  Here at TriStateMortgageHelp.com Joel Gruenke is a certified short sale specialist.  (CDPE)
  2. Contact Your Lender: Reach out to your mortgage lender or loan servicer as soon as you realize that you're unable to make your mortgage payments. Explain your financial situation and express your intention to pursue a short sale. The lender will provide you with their specific requirements and may assign a short sale negotiator.
  3. Gather Required Documentation: Your lender will likely require various financial documents, such as bank statements, pay stubs, tax returns, and a hardship letter explaining your financial hardship. Be prepared to provide these documents promptly.
  4. Determine Market Value: Work with your realtor to determine the fair market value of your property. This involves assessing the current market conditions and comparing your home to recent sales of similar properties in your area.
  5. List the Property: Your realtor will list the property for sale, indicating that it is a short sale. The listing should include a detailed description of the property and highlight any unique features.
  6. Market the Property: Your realtor will market the property to attract potential buyers. Be prepared for potential buyers to negotiate on the sale price, as lenders typically want to maximize the sale proceeds.
  7. Review Offers: When offers are received, review them with your realtor. Your realtor will help you evaluate the offers based on your financial needs and the lender's requirements.
  8. Submit Short Sale Package: Work with your realtor to compile a comprehensive short sale package to submit to your lender. This package typically includes the purchase offer, a hardship letter, financial documents, and a listing agreement.
  9. Lender Approval and Negotiations: Your lender will review the short sale package and conduct their own assessment of the property's value. This process can take several weeks or even months. Your realtor will engage in negotiations with the lender to reach an agreement on the sale.
  10. Closing the Sale: Once the lender approves the short sale, you can proceed with the closing. The buyer's funds will be used to pay off the agreed-upon sale price, and the lender will release the lien on the property.
  11. Short Sale Consequences: Understand that a short sale can have implications for your credit score and may have tax consequences. Consult with a financial advisor or tax professional to understand these aspects fully.
  12. Seek Legal and Financial Advice:​ Throughout the short sale process, consider seeking advice from an attorney who specializes in real estate transactions, as well as a financial advisor to understand the financial implications.
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A short sale can be a complex and time-consuming process, but it can provide a way out for homeowners who are facing financial hardship and cannot afford to keep their homes. Working with an experienced realtor who is well-versed in short sales is critical to navigate the process successfully.

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