Top 5 Short Sale Myths Homeowners Still Believe
Top 5 Myths Homeowners Believe About Short Sales
And why they might be costing you money, time, and peace of mind
If you’re underwater on your mortgage and exploring options, you’ve probably heard of a short sale. But there’s a lot of misinformation floating around—especially online and even from well-meaning friends or agents who haven’t done one in a while.
At Crisp Short Sales, we hear the same myths again and again. Let’s set the record straight and make sure you have the facts before deciding what’s best for your situation.
Myth #1: "Short sales are fast—it’s right there in the name!"
We wish. Despite the name, there’s nothing "short" about the timeline. A short sale refers to the lender agreeing to take a short payoff, not a speedy process.
In reality, short sales often take 60–90 days (or longer) to get approved. Why? Because they involve:
• Submitting a full hardship package
• Bank review and BPO valuation
• Negotiations between lienholders, agents, and buyers
• Multiple signoffs, escalations, and paperwork
The good news? With an experienced short sale processor, a lot of that burden is taken off your shoulders—and approvals can happen faster.
Myth #2: "I need to list my home at the full payoff amount."
Actually, you should list your home at its current market value, even if that’s well below what’s owed. Listing at your loan balance doesn’t help—it usually just scares away buyers.
The goal of a short sale is to attract strong offers that reflect real market demand. From there, the lender reviews everything and decides whether to accept the short payoff.
Pricing too high just delays the process and hurts your chances.
Myth #3: "I’ll be stuck paying commissions and closing costs."
Nope. In nearly every short sale we process, the lender pays the agent commissions and seller closing costs—not the homeowner.
An experienced short sale professional will structure the deal to make sure you pay nothing out of pocket. That includes:
• Agent commissions
• Attorney/title fees
• Transfer taxes
• Settlement charges
If anyone tells you otherwise, it’s time to bring in someone who knows what they’re doing.
Myth #4: "There’s nothing in it for me."
This one’s especially painful because it’s just not true. A successful short sale can:
✅ Protect your credit from the damage of foreclosure
✅ Relieve financial and emotional stress
✅ Let you move on with your life
✅ Even get you relocation assistance (cash at closing), if you qualify
If you’re living in the property and meet the criteria, we’ve helped many homeowners receive $3,000–$10,000 in relocation funds at closing. It’s the lender’s way of incentivizing cooperation and helping you land on your feet.
Myth #5: "Short sale or foreclosure—it’s the same to my credit."
Not even close. While both impact your credit, a short sale is far less damaging than a foreclosure.
A foreclosure stays on your record longer, and signals a total failure to resolve the debt. A short sale, on the other hand, shows you took action to resolve things responsibly.
Plus, many homeowners can buy again in as little as 2–3 years after a short sale, compa
Final Thoughts
Short sales aren’t simple—but they’re often the smartest path forward if you’re upside-down on your mortgage. The key is working with someone who knows the ins and outs, can handle the paperwork, and keeps you informed every step of the way.
If you’re facing foreclosure or struggling to make payments, let’s talk. We’ll help you understand your options and take the next step—with clarity and confidence.
FAQ
How long does a short sale take to get approved?
Typically 60–90 days, depending on the lender, buyer, and number of liens.
Will I owe money after the short sale?
Most lenders waive the deficiency if the process is handled correctly. We’ll help you secure a full release.
Do I need to be behind on payments to qualify?
Not necessarily. What matters most is financial hardship and the fact that the home is underwater.
To learn more, explore our short sale closing service, relocation assistance for short sales, and discover how to avoid foreclosure with a short sale. Get help with your short sale today!To learn more, explore our short sale closing service, relocation assistance for short sales, and discover how to avoid foreclosure with a short sale. Get help with your short sale today! avoid foreclosure with a short sale. Get help with your short sale today!