The first question that most people as is “what is a short sale” when it comes to homeowner selling they’re home.
Brief history, when Dale started in 2007 all there was, was foreclosures and short sale homes. He had to quickly learn to adapt and do short sales for his career to continue as it did.
A Short Sale is…..
When a home owner decides to “Short Sale” they’re home they typicality have already missed a payment or a few. The reason for this is loss of job, Not enough money to drop the price compared to other homes for sale on the market, and/or just want to walk away from the house.
Back in 2007 through 2016 this was common because there were so many properties bought with loans that were not regulated. Fast forward to 2026, it is not that we don’t have regulation, people are just stuck because of the high interest rate.
Regardless of why a home seller chooses to leave a property, a short sale is a way for the banks not to have to manage the home in a bank owned or foreclosure situation. Here is how a short sale typically goes.
Steps to short sale:
- Home owner has made the decision to short sell the home.
- Contacts agent that knows how to short sell a home like Dale.
- List agent meets with Home owners and verifies that home can’t be sold traditional way.
- List agent will go through the normal procedures of listing the home for sale. (Listings agreement, Short Sale Addendum, photos, and short sale documentation.
- List agent puts Home owners in touch with Law firm that will gather documentation to submit to the bank once offer is received.
- List agent puts home on market and lowers list price from what is owed to what market value is.
- List agent receives offer on short sale price.
- Offer is sent to Law firm to be negotiated with the bank.
- Bank counters or approves offer.
FAQ on short sales
Can I buy again after having a short sale?
Yes. Conventional Loan (Fannie Mae/Freddie Mac): 7 years from the completion date. [1]
FHA Loan: 3 years from the completion date. Can drop to 1 year with documented extenuating circumstances. [1, 2]
VA Loan: 2 years from the completion date. [1]
USDA Loan: 3 years from the completion date. [1]
Can you stay in the home during the short sale?
Yes. Banks will check to see if the property is vacant because they want to make sure that the heat stays on and that the asset is protected. If you choose to move out and move on, the list agent will than have to make sure the property is secure and winterized.