What is a Short Sale?

What is a Short Sale?

It seems that everyone is talking about short sales these days. But, what is a short sale? Simply put, a short sale allows you to sell your home for less than what you owe. It is an agreement between you and your lender that the home can be sold without the entire balance of the loan being repaid at the time of sale.  The devil, of course, is in the details.  A full waiver and release from the entire debt is the real goal of a short sale negotiation.

Each short sale must be negotiated to obtain the best and most favorable terms for that particular short sale seller.  Short sales are better for a person’s credit than a foreclosure and they allow the lender to obtain a higher recovery for the asset without the additional expense of a foreclosure.  However, there are many factors that can affect a short sale including the type of loan, the investor involved, the existence of mortgage insurance on the loan, the presence of additional liens, and the relative skill and experience of your short sale agent.

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced short sale agent.   If you are considering a short sale of your Santa Maria, Orcutt, or Nipomo home and would like a short sale consultation, please call my office to schedule a meeting or a private telephone consultation at (805) 938-9950.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent.   She is a Certified Distressed Property Expert (CDPE) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.

*  Nothing in this article is intended to solicit listings currently under contract with another broker.  This article offers no legal or tax advice.  Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.  Mint Properties is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.

Copyright© 2011 Tni LeBlanc *What is a Short Sale?*


  1. Thank you for sharing this Tni. Short sale is never an easy process which makes it very important that homeowners consult dedicated and expert Santa Maria short sale agents when going through a short sale transaction as they know how to get you the best terms.

  2. Many homebuyers are still not aware of short sales and how hard it is to go through this process. Posts like this where they can instantly get advice from expert Santa Maria short sale agents is very helpful. Excellent post!

  3. Hi Tni,

    As an agent representing buyers in a short sale purchase, it is important to have a skilled short sale agent on the other side to reach a successful conclusion. Sellers who have the right representation from their Santa Marina short sale agents to explain the process and their options is key toward achieving a successful transaction.
    Great advice.

  4. As difficult as short sales are for the homeowner, being able to have Santa Maria short sale agents like yourself adds value to the consumer. They know that your experience in short sales and determination will work to their benefit.

  5. This is a short and clear definition of a Santa Maria short sale. You mentioned some very important points, such as the fact that each short sale must be negotiated with the lender and the fact that the goal is to get the lender to approve the sale and release the home owner from all debt.

    I wish you continued success with your Santa Maria, Orcutt and Nipomo short sales.

    Laurie Hellmer
    Real People Realty
    Chicago, IL

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