Understanding Short Sales in Real Estate
A short sale is a real estate transaction where a homeowner sells their property for less than the amount owed on their mortgage. This process can help financially distressed homeowners avoid foreclosure while providing buyers with an opportunity to purchase properties at potentially reduced prices.
If you’re considering a short sale, either as a seller or a buyer, it’s essential to understand the process, benefits, and potential challenges involved.
What Is a Short Sale?
In a short sale, the lender agrees to accept a payoff amount that is less than the total mortgage owed. This usually happens when a homeowner is experiencing financial hardship and the current market value of the property is lower than the mortgage balance.
For example, if a homeowner owes $250,000 on their mortgage but can only sell the home for $200,000, the lender may approve the sale and forgive the remaining $50,000 (or part of it).
Why Do Homeowners Choose a Short Sale?
Short sales are often pursued as an alternative to foreclosure. Here are some reasons a homeowner might consider a short sale:
Avoiding Foreclosure
A short sale has less of a long-term negative impact on the homeowner’s credit score compared to foreclosure.
Relief from Financial Burden
Homeowners who are unable to keep up with their mortgage payments can avoid additional debt accumulation.
Potential Debt Forgiveness
In some cases, lenders may forgive the remaining mortgage balance, allowing the homeowner to move on without lingering financial obligations.
What Are the Benefits of Buying a Short Sale Property?
For buyers, short sales can present an opportunity to purchase a property below market value. Benefits include:
Potential Cost Savings: Short sale homes are often listed at attractive prices, making them appealing to investors or budget-conscious buyers.
Less Competition: Short sales can take longer to close than traditional sales, which may deter some buyers, reducing competition.
Challenges of Short Sales
While short sales offer advantages, there are challenges for both sellers and buyers:
For Sellers:
Lender Approval Required: The lender must approve the short sale, which can delay the process.
Potential Tax Implications: Debt forgiveness may be considered taxable income. Consulting a tax advisor is recommended.
For Buyers:
Extended Timelines: Short sales often take longer to close due to the lender’s involvement.
Property Condition: Short sale homes are typically sold “as-is,” which means buyers may need to address repairs or maintenance.
How Does the Short Sale Process Work?
Consult a Real Estate Agent
A knowledgeable real estate agent can guide you through the short sale process, whether you’re selling or buying.
Determine Financial Hardship (For Sellers)
Homeowners must demonstrate financial hardship to the lender, such as loss of income, divorce, or medical expenses.
Get Lender Approval
The lender reviews the homeowner’s financial situation and the proposed sale terms before approving the short sale.
Market the Property
The property is listed on the market, often at a competitive price to attract buyers.
Offer Submission and Approval
Once a buyer submits an offer, it must be approved by the lender, which can take weeks or even months.
Closing the Sale
After lender approval, the transaction proceeds like a traditional home sale, with both parties finalizing the deal.
Is a Short Sale Right for You?
Whether you’re a homeowner considering a short sale or a buyer interested in purchasing one, it’s important to work with a real estate professional experienced in short sales. They can help you navigate the complexities and ensure the process runs as smoothly as possible.
If you have questions about short sales or want to explore your options, Keller Williams Realty is here to help. Contact us today to speak with an experienced agent and get the guidance you need.
This page provides an overview of short sales to educate visitors while encouraging them to connect with us for more details 888-870-0443
Short Sales Services
Homeowner's
Upside Down on Your Mortgage? We Can Help You Sell with a Short Sale
KW Default Solutions – Trusted. Streamlined. Nationwide.
If you owe more on your home than it’s worth and need to sell, you’re not alone — and you’re not stuck. At KW Default Solutions, we specialize in helping homeowners like you navigate the short sale process and avoid foreclosure with dignity.
💡 What Is a Short Sale?
A short sale allows you to sell your home for less than what you owe on your mortgage, with your lender’s approval. The difference between your loan balance and the sale price is either forgiven or negotiated — helping you avoid foreclosure, reduce long-term financial damage, and move on with your life.
🔎 Is a Short Sale Right for You?
A short sale may be the best solution if:
You owe more than your home is worth
You’re facing financial hardship (job loss, divorce, medical issues, etc.)
You’re behind on your mortgage — or know you soon will be
You need to move but can’t afford to bring cash to closing
You want to avoid foreclosure and the damage it can do to your credit and future
✅ Why Work with KW Default Solutions?
We’re not just another real estate team — we are short sale specialists with decades of experience and a national network. Our process is:
📞 Confidential – No judgment, no pressure
📝 Full-Service – We handle paperwork, negotiations, and lender communication
💰 No Cost to You – In most cases, your lender pays all fees, commissions, and closing costs
🤝 Proven – Thousands of successful short sales negotiated
📌 What Does the Process Look Like?
Free Consultation – We review your situation and determine if you qualify
List the Home – We market your home and accept an offer
Submit the Short Sale Package – We work directly with your lender to get approval
Close the Sale – You move on with no foreclosure on your record
Our experienced team will be with you every step of the way — from hardship letters and appraisals to approval and closing.
📞 Let's Explore Your Options — Confidentially and at No Cost
You deserve real answers and a trusted advocate. At KW Default Solutions, we help homeowners in distress find the best possible outcome — often with zero out-of-pocket cost.
📲 Call or Text Now: 888-980-9820
Don’t wait until foreclosure is your only option. Let’s talk today — we’re here to help you move forward.
KW Default Solutions
One Network. One Standard. Powered by Keller Williams.
Short Sale Negotiating for Real Estate Agents
Short Sale Negotiation Services for Real Estate Agents
KW Default Solutions – Your Trusted Short Sale Partner
Are you working with a homeowner who owes more than their home is worth?
Let KW Default Solutions take the pressure off your shoulders.
We provide full-service short sale negotiation support so you can focus on serving your clients and closing deals — without the delays, confusion, or risk that often come with lender communication.
🛠️ We Handle the Hard Part. You Keep the Client.
Short sales are complex. One missing document or misunderstood guideline can delay — or destroy — the entire transaction. That’s where we come in.
Our experienced team manages the entire short sale process from start to finish, ensuring everything is done properly, legally, and efficiently.
✅ What We Do for Agents:
Handle all lender communications & negotiations
Package and submit the complete short sale file
Coordinate with title, buyers, and appraisers
Track investor-specific guidelines (FHA, VA, Fannie Mae, etc.)
Keep you updated every step of the way
Protect your commission – every time
Whether you're new to short sales or just don’t have time to chase paperwork and approvals, we're your behind-the-scenes solution.
📦 Our Process Is Agent-Friendly
You list the property and maintain the client relationship
We handle the short sale approval and bank negotiations
You sell the home — and get paid.
Your client avoids foreclosure — and you’re the hero
We work in full transparency with you and your brokerage. No surprises. No competition for your client. Just reliable, expert service.
💬 Why Agents Choose KW Default Solutions
Trusted by top brokerages and investors nationwide
No upfront cost to you or your seller
We’ve negotiated thousands of short sales
Fully compliant with local and federal regulations
We know the guidelines — and how to navigate them
Short sales are more regulated than ever. Don’t risk a denial, audit, or lost listing. Let our expert team take care of the details.
📲 Let's Work Together
Need help with a current listing? Want to offer short sale services to your sphere without taking on the complexity?
We’re here to support you.
📞 Call or Text: 888-980-9820
KW Default Solutions – Trusted. Streamlined. Nationwide.
Your short sale partner, powered by Keller Williams.
Valuation & BPO Services
Third-Party Valuations & Broker Price Opinions (BPOs)
Trusted. Accurate. Independent. Powered by KW Default Solutions.
Need an expert, unbiased property value to support a short sale, price reduction request, or pre-listing strategy?
We provides professional third-party valuations and Broker Price Opinions (BPOs) to support your decision-making — and help you get deals done faster, with less resistance.
Whether you're working with a distressed homeowner, a reluctant seller, or a servicer requiring documentation, our valuation services are built to deliver clarity, accuracy, and speed.
🎯 What We Do
We offer third-party BPOs and property valuations for:
🔎 Short Sales – Provide lenders with a realistic, supportable value for approval
🏠 Price Reduction Requests – Help agents justify strategic listing changes
🧾 Investor Acquisitions & Dispositions – Confirm ARV or current market value
💼 Loss Mitigation & Servicer Support – Compliant documentation for asset managers
🔧 Repair-Adjusted Valuations – Pricing based on true condition and rehab needs
📉 Expired Listings or Stale Inventory – Provide data-backed rationale to reset pricing
Our reports help overcome lender pushback, seller denial, or buyer hesitation — and give you the leverage you need to move forward with confidence.
📦 What’s Included in Every BPO:
Current sales comps (actives, pendings, solds)
Neighborhood market conditions & absorption rate
Property condition adjustments
Estimated days on market
Repair or rehab recommendations (if applicable)
Recommended list price, value range, or investor ARV
Branded or unbranded format (based on need)
All BPOs are completed by experienced licensed professionals with local market knowledge — not automated tools or overseas assistants. You get boots-on-the-ground accuracy, every time.
✅ Why Use a Third-Party Valuation?
✅ Adds credibility when working with banks or servicers
✅ Helps manage seller expectations when pricing is emotional or unrealistic
✅ Supports your case with verifiable, documented market data
✅ Avoids relying on the lender’s internal valuation alone
✅ Keeps your files compliant, professional, and persuasive
When the numbers matter — and they always do — you need more than just a gut feeling. You need an objective, experienced opinion you can trust.
🔄 Our BPO Services Are Fast & Flexible
🕒 Standard Turnaround: 24–48 hours
📍 Coverage: Nationwide (select areas may vary based on availability)
🧭 Customization: Tailored formats for different client needs (banks, investors, agents)
💼 Confidential & Professional – We do not solicit listings or contact your clients
We’re not here to compete — we’re here to support you and your business. Whether you need one valuation or a hundred, we scale with you.
🤝 Who We Work With
Real estate agents & brokerages
Servicers & asset managers
Investors & acquisition teams
Attorneys, CPAs, and advisors
Short sale negotiators & transaction coordinators
If you’re managing a distressed asset, evaluating a difficult listing, or need support for seller pricing decisions, we’re your behind-the-scenes valuation partner.
📲 Let’s Get You the Right Number
Whether you need to justify a price drop, push back on a lender’s inflated value, or move a file forward with a clean and accurate BPO, we’re ready to help.