How to Use a Short Sale to Avoid Foreclosure (and Get Relocation Assistance)?
Foreclosure is one of the most stressful experiences a homeowner can face. But what if there was a way to avoid it, protect your credit, and even get financial help to move on with your life? Enter: the short sale.
Quick Navigation:
What Is a Short Sale? (And How Does It Work?)
A short sale is when you sell your home for less than what you owe on your mortgage. Sounds simple, right? But here’s the catch: your lender has to approve the sale because they’re taking a loss.
Why would a bank agree to this?
- Foreclosure is expensive and time-consuming for lenders.
- A short sale helps them avoid legal fees and holding costs.
- It’s a win-win: you avoid foreclosure, and the bank cuts its losses.
Who qualifies for a short sale?
- You must prove financial hardship (job loss, medical bills, divorce, etc.).
- Your home must be worth less than your remaining mortgage balance.
- You can’t have other assets (like savings or investments) to cover the shortfall.
Pro Tip: A short sale doesn’t cost you anything upfront. Real estate commissions and negotiation fees are paid through the sale proceeds—so you never have to dig into your own pocket.
How Long Does a Short Sale Take? (And How to Speed It Up)
Traditional short sales can take 2 to 6 months, but here’s the good news: our team consistently gets payoffs in 45-60 days.
Why do short sales usually take so long?
- Incomplete paperwork slows everything down.
- Lenders drag their feet without consistent follow-up.
- DIY attempts often lead to delays and frustration.
How we close short sales faster:
- We submit a complete short sale package upfront (no back-and-forth).
- We follow up with lenders multiple times a week to push for approvals.
- Our proven process ensures payoffs in 45-60 days—while others take months.
If you’re facing foreclosure, time is critical. Let us handle the heavy lifting so you can move on with your life.
Can You Get Relocation Assistance with a Short Sale?
Yes, you can! Many lenders offer cash-for-keys or relocation assistance programs to help sellers transition smoothly.
How much can you get?
Most lenders offer between $ 3,000-10,000, depending on your loan type (FHA, VA, or conventional).
How to qualify for relocation assistance:
- Cooperate fully with the short sale process.
- Live in the home as your primary residence (some exceptions apply).
- Use the funds for moving costs (you can’t profit from the sale).
Pro Tip: Our team negotiates directly with lenders to maximize your relocation assistance. If you’re working with an agent, we can handle this for you.
Will a Short Sale Ruin My Credit?
A short sale will impact your credit, but it’s far less damaging than a foreclosure.
Foreclosure vs. Short Sale: The Credit Impact
Foreclosure |
Short Sale |
|---|---|
| --Drops credit score by 150-250 points | --Drops credit score by 50-150 points |
| --Stays on your credit report for 7 years | --Listed as “settled” or “paid for less than owed” |
| --Makes it hard to get a mortgage for 5-7 years | --You can buy a home again in as little as 2 years |
The bottom line? A short sale is the smarter, less damaging way to avoid foreclosure.
Why You Shouldn’t Handle a Short Sale Alone
Short sales are complex. Lenders often:
- Lowball relocation offers
- Demand extra paperwork
- Reject offers without clear explanations
That’s why working with a dedicated loss mitigation team can:
- Increase your chances of approval
- Maximize your relocation assistance
- Avoid delays with complete, accurate paperwork
Why Choose Our Team?
- 45-60 day payoffs (instead of waiting months)
- Expert negotiators who fight for the best terms
- Relocation assistance maximized whenever possible
- No upfront fees or out-of-pocket costs for sellers
If you’re a homeowner facing foreclosure or an agent working on a short sale, we can handle everything for you.
Get a Free Short Sale Consultation
Don’t navigate this process alone. Our loss mitigation team is here to help.
Fill out our form and request a free consultation today.