Why VA Short Sales Can Actually Be Faster Than You Think

When most agents hear *VA short sale*, their shoulders tense up. The common belief is that short sales involving Veterans Affairs–backed loans drag on for months, filled with red tape, endless reviews, and frustrated buyers walking away before closing.

Here’s the truth: VA short sales don’t have to be slow. In fact, with the right preparation and a clear understanding of the process, they can often move more quickly than FHA or even conventional short sales.

At Crisp Short Sales, we’ve seen firsthand that when the right steps are taken, VA short sales can close smoothly — sometimes faster than expected. Let’s break down why.

1. VA Has Clear Guidelines on 1. VA Has Clear Guidelines on Net Proceeds

Unlike some investors that adjust net requirements deal by deal, VA short sales have a standard minimum net return: 84.05% of the offer price. That number may look intimidating at first, but here’s the upside — it’s predictable. Agents and negotiators don’t have to wonder what the investor might demand. If you structure the HUD correctly from the start, you’re already halfway to approval.

Compare this with Fannie Mae or Freddie Mac short sales, where guidelines can fluctuate or get bogged down in back-and-forth. VA’s clear math often saves weeks of guesswork.

2. Relocation Assistance Is Built In

A key advantage of VA loans is that they include relocation assistance for the homeowner. VA short sale guidelines allow sellers to qualify for funds to help with moving expenses, making the process less stressful. When a seller knows they’ll have money available for relocation at closing, they’re more likely to cooperate quickly and avoid delays. This built-in support is unique to VA, and it helps keep the short sale moving on schedule.

3. VA’s Valuation Process Is Streamlined

Most short sale delays come down to property valuation. The BPO or appraisal sets the tone for everything else. VA uses clear valuation standards and is generally more receptive to disputes when you present legitimate comparables, repair estimates or documentation. This responsiveness can shave weeks off the process compared to other investors.

4. Lenders Want These Files Closed

Servicers handling VA short sales know the rules and aren’t reinventing the wheel with every new file. That consistency means less fumbling, fewer “let me check” delays, and a smoother timeline. At Crisp, we work directly with lender short sale departments, preparing every document so there’s no room for stall tactics. The more airtight the submission, the faster the approval.

5. The Buyer’s Experience Can Be Better

Buyers are more likely to stick with a VA short sale because they can trust the timeline. When you tell a buyer that a VA short sale typically takes 60–90 days instead of the “could be 3 months, could be 9” uncertainty of other investor programs, they’re less likely to walk away. That certainty is a huge advantage and reflects positively on you as the agent.

Final Thoughts

Yes, short sales always require patience and precision. But VA short sales don’t deserve their bad reputation for being slow. With clear net requirements, built‑in relocation help, and a lender playbook that’s both consistent and flexible, VA short sales can often move faster than other types.

The key is preparation. If you’re an agent working on a VA short sale, don’t go it alone. Having an experienced negotiator on your side ensures the file is structured correctly, the valuation is handled strategically, and the lender gets exactly what they need the first time. At Crisp Short Sales we specialize in taking that workload off your plate so you can focus on selling homes and serving your clients.

Why Some Short Sales Stall — And How to Keep Yours Moving

If you’ve ever been involved in a short sale, you know it’s not a straight shot to closing. In fact, a short sale can feel more like a winding road with a dozen stop signs — and a few unexpected detours. Why? Because there are so many moving parts, and so many different parties and stakeholders, that if just one person slows down, the whole transaction can come to a crawl.

That’s where an experienced short sale processor steps in. Think of a good processor as a transaction air-traffic controller — keeping all the planes (lenders, sellers, buyers, title companies, agents) from colliding or circling endlessly in a holding pattern. Without someone coordinating all of those moving pieces, it’s far too easy for one delay to snowball into a stalled deal.

The Usual Suspects: Why Short Sales Get Stuck

While every file is different, here are some of the most common reasons a short sale grinds to a halt:

Too Many Hands, Not Enough Coordination

You’ve got the listing agent, buyer’s agent, title company, lender, negotiator, and sometimes multiple lien holders. If no one is proactively managing the communication, files get buried and deadlines get missed.

Lender Delays

Banks are notorious for long response times. Your file could sit for weeks unless someone is calling, emailing, and escalating it up the chain. Without regular follow-up, the lender’s “inbox” can feel like a black hole.

Incomplete or Outdated Documentation

Missing pay stubs, expired bank statements, unsigned forms — any gap in paperwork can stop the approval process cold. Lenders won’t move forward without every box checked.

Special Program Rules (Looking at You, FHA)

FHA loans come with their own “waterfall” process for loss mitigation. Homeowners must first be evaluated for modification or other retention options before the bank will even look at a short sale offer. Skip that first step, and you’re in for weeks — or months — of delays while the bank “completes” the required process.

How to Keep a Short Sale Moving

The good news? Most stalls can be avoided — if you know what to watch for.

Assign a Dedicated Short Sale Processor

A short sale processor acts as the glue holding the transaction together. They coordinate between all parties, keep everyone updated, and push for next steps before bottlenecks appear.

Stay in the Lender’s Ear

If you’re not following up regularly, you’re leaving the timeline to chance. Persistent (and polite) calls, emails, and documented escalations keep your file on the radar — and often get it moved up the pile.

Front-Load Documentation

Gather, review, and submit all required documents upfront — and keep them updated. Expired paperwork is a surprisingly common reason for delays.

Understand the Rules Before You Start

If the loan is FHA, VA, or another program with special requirements, start by mapping out the exact steps the bank will require. Work the process instead of fighting it.

The Bottom Line

Short sales are complex. They have a lot of moving parts, and there are plenty of opportunities for things to get stuck along the way. But with an experienced short sale processor coordinating the process, staying on top of the lender, and making sure all the required steps are followed — even tricky ones like FHA’s waterfall — you can avoid the most common roadblocks and keep your deal moving forward.

In other words: don’t let your short sale stall out. Keep the momentum, and you’ll keep the closing date on track.

Ready to start a short s ale? Visit our How We Help page to get started.

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**.