The Top 5 Myths About Short Sales—And the Truth Behind Them

When it comes to short sales, misinformation is everywhere. Sellers hear one thing from a neighbor, agents read something online from ten years ago, and buyers assume short sales are just “foreclosure light.”

The truth? Short sales are a unique, highly strategic transaction that can benefit everyone involved—when handled correctly. Let’s break down the five biggest myths about short sales and uncover the reality behind each one.

Myth /#1: Short Sales Always Take Forever

It’s true—years ago, short sales had a reputation for dragging on for six months or more. Back then, lenders were still figuring out the process, and delays were common.

The Truth: With the right negotiator and proper file preparation, many short sales can be approved in 60–90 days, sometimes even faster. At Crisp Short Sales, we pre-package every file with exactly what the lender needs, cutting weeks off the timeline.

Myth #2: Short Sales Hurt Your Credit Just Like a Foreclosure

One of the scariest misconceptions is that a short sale damages your credit just as badly as losing your home to foreclosure.

The Truth: While any late mortgage payments will impact your credit, a completed short sale is typically far less damaging than foreclosure. More importantly, a short sale can allow you to recover financially faster—often making you eligible for a new mortgage in as little as two years, compared to seven after a foreclosure.

Myth #3: The Seller Has to Pay All the Costs

Many homeowners avoid short sales because they think they’ll be hit with big fees they can’t afford.

The Truth: In most cases, the lender pays the real estate commissions and negotiator’s fees. At Crisp Short Sales, there’s no cost to the seller or their agent—ever. Our fees are built into the transaction and paid by the buyer’s side at closing.

Myth #4: Short Sales Mean the Seller Is Walking Away With Nothing

There’s a common belief that in a short sale, the homeowner hands over the keys and walks away empty-handed.

The Truth: Many lenders offer relocation assistance at closing—sometimes thousands of dollars—to help sellers move. This incentive is especially common when the short sale is part of a government program or negotiated properly.

Myth #5: Any Agent Can Handle a Short Sale Without Extra Help

While any licensed real estate agent can technically list a short sale, that doesn’t mean they should try to manage the entire process alone.

The Truth: Short sales require specialized knowledge of lender processes, document requirements, and negotiation tactics. Without it, deals fall apart. That’s why experienced negotiators like Crisp Short Sales exist—to protect the deal, keep communication flowing, and make sure the closing actually happens.

Short sales are often misunderstood, but when done right, they can be a win-win for everyone involved—lenders avoid costly foreclosures, sellers avoid devastating credit damage, and buyers can secure great properties.

The key is working with someone who knows the process inside and out. At Crisp Short Sales, we’ve spent over 15 years perfecting our system so short sales close faster, smoother, and with less stress for everyone.

If you’re a seller or an agent with a short sale on your hands, start a short sale with us today. You might be surprised how quickly we can turn a “hopeless” situation into a done deal.

What Happens After You Accept a Short Sale Offer?

Accepting a short sale offer is an exciting step—but it’s really just the beginning. Whether you’re a homeowner trying to avoid foreclosure or a real estate agent guiding a client through the process, knowing what happens after the seller says “yes” can make the difference between a smooth approval and a stressful delay.

The Seller Chooses the Offer

In any real estate transaction, the sale of your home is a contract between the buyer and the seller, so the seller decides which offer to accept—not the bank. You’re not obligated to take the highest offer or meet any specific criteria. The decision is yours, based on what’s best for your situation.

Buyer Documentation: Proof They Can Perform

After acceptance, the buyer must show they have the ability to close. For cash buyers this means proof of funds; for financed buyers it means a pre‑qualification or pre‑approval letter. If the buyer is purchasing through an LLC, the lender will also require articles of organization listing all members and documentation that the person signing has authority to do so.

Ordering Title & Checking for Liens

Once the offer and buyer documentation are ready, work with your local title company or closing attorney to order title. The title report will list all liens, mortgages, and judgments on the property. Disclosing everything upfront prevents last‑minute surprises that could derail approval.

The Preliminary Closing Statement

Next, the title company or attorney will prepare a preliminary closing statement (also called an estimated settlement statement) outlining all of the costs on the seller side of the transaction. This includes mortgage payoff amounts, property taxes owed, title and attorney fees, HOA dues or special assessments, and transfer taxes. For homeowners, this is your first look at the numbers. For agents, it’s a required part of the short sale submission.

Submitting the Package to the Lender

Finally, your short sale negotiator will submit the executed purchase contract, buyer’s proof of funds or pre‑qualification, LLC documentation if applicable, the full title report, and the preliminary closing statement to the lender. From here, the bank will begin its review process, which may include ordering a valuation, verifying the buyer’s qualifications, and reviewing the seller’s hardship documentation.

Why This Process Matters

For homeowners, knowing what to expect keeps you in control and reduces stress, and providing complete documentation early helps speed up bank review. For agents, a well‑organized submission positions you as a professional who makes the bank’s job easier—which can lead to faster approvals and fewer deal‑killing delays.

The Bottom Line

Once a short sale offer is accepted, it’s not time to sit back—it’s time to move quickly. Each step, from collecting buyer documents to ordering title and preparing the preliminary closing statement, sets the stage for lender approval. When sellers, agents, and negotiators work together to get a complete package to the bank early, short sales can move surprisingly fast—and everyone gets to the closing table with less stress.

Ready to navigate your own short sale? Start a Short Sale or learn How We Help with Crisp Short Sales.

5 Ways Short Sales Can Actually Boost an Agent’s Reputation (and Repeat Business)

When most agents hear the words short sale, they think headache. But done right, short sales are one of the fastest ways to stand out, earn trust, and create a steady stream of referrals. In today’s market, more homeowners are underwater or slipping behind on payments. The agents who can confidently guide them through a short sale don’t just save deals — they build reputations that attract the next listing.

Below are five practical ways mastering short sales grows your brand and book of business.

1) Position yourself as a problem-solver with tools others don’t have

Anyone can put a sign in the yard. Far fewer can structure a file, prep a seller, and shepherd a bank approval on a tight timeline. When you can explain—in simple terms—how you’ll guide a homeowner from “we owe more than it’s worth” to an approved closing, you’re no longer just a salesperson. You’re the pro who brings an extra toolbox: packaged financials, clean hardship letters, correct valuations, and tight buyer terms. That reputation sticks.

Tip: In your listing consult, outline your process with a one-page checklist. Show the seller you already have a path that works.

2) Market yourself as the trusted short sale expert—while others avoid them

Distressed homeowners get bombarded by wholesalers and sketchy “debt relief” mailers. You can be the professional alternative. Publish simple explainers, share recent wins, and speak in plain English about timelines, approvals, and what the bank actually cares about (net). You’ll attract sellers directly—and other agents who want help—but you’ll also build a brand as the calm problem‑solver who gets complex deals closed the right way.

Reinforce that positioning on your site’s How We Help page and point sellers to our secure Start a Short Sale form.

3) Set yourself up for referrals directly from lenders

Quietly, some servicers and third‑party platforms maintain “go‑to” lists of agents who’ve proven they can close. When your files are clean, your updates are timely, and your approvals convert to closings, you get remembered. That can lead to inbound referrals—listings you didn’t spend a dollar to acquire. It’s simple: make the bank’s job easier, and they’ll want more of you.

Tip: After a smooth closing, send a short thank‑you recap to the negotiator with bullet points of what went right. Professional, concise, unforgettable.

4) Represent both sides—earn double commission (ethically and by the book)

Short sales reward preparation. If you’ve done the work to price correctly, educate buyers, and keep everyone aligned, you’re in a strong position to bring the buyer, too. With proper disclosure and compliance with local rules and brokerage policy, dual agency or designated agency can be permissible—and it often streamlines the path to approval. Smoother file, fewer surprises, faster closing—and yes, potentially both sides of the commission.

Tip: Set expectations early with buyers about lender timelines and required terms (as‑is, realistic inspection windows, proof of funds). Fewer re‑trades, happier lender.

) Partner with local bankruptcy and divorce attorneys

Many attorneys have clients who are stuck—behind on payments, overwhelmed, and unsure of options. A short sale can be the cleanest exit, but it’s not always on their radar. Build relationships with BK and family‑law attorneys. Offer to be their “short sale on‑call” resource, and you’ll become part of their solution set. That’s not just lead flow—it’s credibility that multiplies over time.

Tip: Create a one-page “Attorney Partner Sheet” explaining how your process protects clients, timelines to expect, and what documents you’ll need.

The bottom line

Short sales aren’t just rescue missions. They’re reputation makers. When you show up as the pro who can turn complexity into progress—ethically, transparently, and efficiently—you win listings, earn referrals (sometimes from the lender), and become the agent people call when the deal looks tough. Don’t run from short sales. Lean in, build the muscle, and watch your pipeline grow.

Helpful resources on our site

• How we help agents & homeowners

• Start a short sale (secure intake)

• Who we serve