A short sale is when your lender agrees to accept less than the full loan balance so you can sell the home and walk away. It is slower than a normal sale and lender-heavy on paperwork, but it protects your credit far more than a foreclosure and often comes with a deficiency waiver so you don't owe the difference.
How it works
- 1
Confirm eligibility
Verifiable hardship, no equity, willing seller, and an arm's-length buyer.
- 2
Request the short-sale package
Your lender provides a packet listing every form and disclosure they require.
- 3
Hire a short-sale agent
An agent who has closed short sales in Colorado is worth their commission three times over.
- 4
List, market, and negotiate
Price it correctly, attract real buyers, and negotiate the offer the lender will accept.
- 5
Lender approval and close
Approval letters in hand, you close, hand over keys, and move on with a deficiency waiver in writing.
Why homeowners choose this path
- Avoids a foreclosure on your record
- Often includes a written deficiency waiver
- Lets you control the move-out timeline
- Faster path back to qualifying for a mortgage