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.

The One Document That Can Make or Break Your Short Sale Approval

When it comes to short sales, there’s one document that can make the difference between a smooth approval and a flat-out denial — and it’s not the contract, the HUD, or the bank’s net sheet.

It’s the hardship letter.

This simple, 1‑2 paragraph statement can be the deciding factor in whether your lender agrees to accept less than what’s owed on your mortgage. And yet, it’s often the most rushed, under-thought, or misunderstood part of the short sale package. Let’s change that.

### What is a Hardship Letter?

A hardship letter is a short, personal statement explaining why you can no longer afford your mortgage and must sell the home in order to avoid foreclosure.

At one point, you were able to make the payments. Then something changed — a job loss, medical emergency, divorce, relocation, or another life event — and now you can’t.

Your hardship letter connects the dots for the lender, showing them there’s a valid, long-term financial hardship that justifies approving the short sale.

### Why It Matters So Much

Banks and mortgage investors don’t approve short sales just because a homeowner *wants* to sell — there has to be a verifiable reason you can’t continue paying the loan.

Your hardship letter:

- Sets the tone for your entire short sale review.

- Humanizes the file, turning a stack of paperwork into a real story.

- Supports other documents like pay stubs, bank statements, and tax returns.

- Helps the lender check a key approval box: “Is there a valid, ongoing hardship?”

Without a convincing hardship letter, even the best-priced offer and cleanest file can stall.

### How to Write a Strong Hardship Letter

You don’t need to be a professional writer. In fact, the best hardship letters are straightforward and honest. Keep it to 1‑2 paragraphs and include:

1. **Your situation before the hardship** – Briefly explain that you could afford the mortgage when you bought the home.

2. **What changed** – State the specific event or events that caused your income to drop or expenses to rise.

3. **Why selling is the only option** – Make it clear that a short sale is the only way to avoid foreclosure, and the hardship is long-term.

**Example:**

"When I purchased my home in 2016, I was fully employed and able to comfortably afford the monthly payments. In January of this year, I lost my job due to company downsizing. While I have been actively seeking new employment, my current income is not enough to cover the mortgage, utilities, and basic living expenses. I have depleted my savings and fallen behind on payments. Selling the home through a short sale is the only option to avoid foreclosure and further damage to my credit."

### Common Mistakes to Avoid

- Being vague — “I just can’t afford it anymore” isn’t enough.

- Over-explaining — Don’t turn it into a life story; stick to the facts.

- Blaming the lender — Keep it professional, not emotional.

- Forgetting to sign and date — Most lenders require a wet signature.

### Forms vs. Free-Written Letters

Some lenders require you to complete their specific hardship affidavit form instead of a free-written letter. Others will accept either. Always check your short sale package requirements — sending the wrong format can delay the file.

Even on a form, your written explanation should follow the same structure above.

### Final Tips for Success

- Sign and date the letter in ink unless your lender specifically allows electronic signatures.

- Be truthful — lenders can and will verify your financial hardship.

- Submit it early with your short sale package to avoid delays.

The hardship letter may be short, but it’s a make-or-break document. Done right, it shows the lender you’ve experienced a legitimate, lasting change in circumstances — and that approving the short sale is the most reasonable outcome for everyone involved.

For more on boosting your reputation as an agent, check out our pos on **5 Ways Short Sales Can Actually Boost an Agent’s Reputation (and Repeat Business)**.

And if you’re looking to keep your sale on track, don’t miss **How to Win Over a Short Sale Buyer**.