short sale

What is a Short Sale?

A short sale is a sale of property in which the proceeds from the sale will fall short of the balance owed on the loan or loans secured by the property sold. In a this sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the property owner in exchange for the sale of the property to a third party.

A short sale is typically executed to prevent a foreclosure. Banks and lenders are typically not interested in taking the property back through a foreclosure. If they do foreclose, then they have it on their balance sheet as a liability. Additionally, they have to spend time and money to turn around and sell the property themselves. That is not their core business.

Lender negotiations are critical! They require the expertise, experience and strong working relationships with mortgage companies and banks that are provided by agents. Imperial has the expertise to assist with the process. We have successfully negotiated these transactions for many years. You will definitely want an expert on your team to help you through this process.


For the homeowner, advantages include avoidance of a foreclosure on your credit history. Having a foreclosure on your credit report is second only to bankruptcy. This will substantially reduce your credit score and your ability to borrow money going forward. You will also have to wait several years to qualify for a mortgage again.

The impact of a short sale on your credit is much less severe than with a foreclosure. Also, in most cases you may again qualify for a mortgage in as little as 18 months.

A short sale is typically faster and less expensive than a foreclosure. When you use Imperial to facilitate your sale, you will be getting the expert consultation that you need to be successful.

Negotiation Tips

Why Shouldn’t I Negotiate with my Lender Directly?

It is not the formula for success. For one thing, the property needs to be listed and sold to a third party. Your bank or lender would almost certainly insist that you need professional assistance to handle the sale. Plus, you only get one chance to negotiate a way out of foreclosure through the short sale process. It’s extremely important to have experience and expertise on your side to do it right. You wouldn’t go to court without an experienced attorney! So why would you try to navigate the intricate process of a short sale without an experienced expert on your side? As a mortgage broker, Imperial has relationships and experience in dealing with banks and lenders.

Why Would My Lender Agree to a Short Sale?

Whether a lender chooses to foreclose or agrees to a short sale, the lender is taking a loss. In many instances, lenders take less of a loss with this type of sale. They can cut its losses faster then what is required to foreclose. Foreclosure is usually a last resort for everybody. Remember, a lender is in the business of making loans, not owning, managing and reselling properties

When Should I Begin The Process of A Short Sale?

Immediately! Distressed situations are likely to be very time sensitive and negotiations take time. The faster we can begin negotiating with your lender on your behalf, the greater the likelihood of a successful resolution. You don’t have to wait until you receive a notice of default or  foreclosure proceedings on your home are underway. Contact Imperial today! We are here to help you. We’ll answer all of your questions and you are under no further obligation.

If I Do Not Live In The Property, Do I Still Meet The Requirements?

Yes. Non-owner-occupied properties do qualify for a short sale.

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