Before choosing a path
A short sale is one option—not the only option.
The right direction depends on the loan, the property, the hardship, the timeline and whether keeping the home is realistic.
Traditional sale
If projected proceeds can satisfy the mortgage and selling costs, a standard sale may provide more control and a simpler approval process.
Reinstatement or repayment
The servicer may offer a way to catch up through a lump-sum reinstatement or structured repayment plan.
Loan modification
The servicer may evaluate changes to loan terms intended to create a more manageable payment.
Forbearance
A temporary reduction or pause may be available in some circumstances; repayment terms still need to be understood.
Short sale
The property is marketed and sold, subject to lender approval of proceeds below the total amount owed.
Deed-in-lieu
Ownership may be transferred to the lender under approved terms, generally after other conditions are met.
Questions for the servicer
Ask for decisions in writing.
- Who owns or insures the loan?
- What loss-mitigation options are available?
- What documents are required for a complete application?
- Is there an active foreclosure date or legal deadline?
- Will foreclosure activity continue during review?
- How will any unpaid balance be handled?
- Are relocation incentives available under the applicable program?
When a short-sale consultation may make sense
A review may be useful when the expected sale price is below the combined mortgage and lien balances, the homeowner cannot maintain the property or payment, a move is necessary, or a traditional sale is unlikely to produce enough proceeds.
Consultation does not mean a short sale is the final answer. The purpose is to understand the numbers, identify deadlines and determine what information should be presented to the lender and professional advisors.