What Is a Short Sale and How Does It Work in Texas?

If you’re behind on payments, overwhelmed, and wondering what your options are before foreclosure hits—take a breath. A short sale may be the lifeline you didn’t know existed. And in some states, like Texas, where foreclosure timelines move fast, understanding this option can be the difference between a fresh start and long-term damage.

Let’s break it down without the confusing lender jargon.

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So… What Exactly Is a Short Sale?

A short sale happens when a homeowner sells their property for less than what’s owed on the mortgage with the lender’s approval.

Example:

You owe $350,000.

Your home will sell for $300,000.

Your lender agrees to take the loss and forgive the difference.

It’s a legal, legitimate alternative to foreclosure—and for many homeowners, it’s the cleanest exit available.

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Why Do Lenders Approve Short Sales?

Because it saves them money.

Foreclosure is expensive, long, and messy.

A short sale often costs them less than taking the home back.

And when it’s handled by an experienced short sale agent (hi 👋), lenders are much more likely to cooperate.

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Who Qualifies for a Short Sale?

Generally, lenders look for three things:

1. Financial Hardship

This includes:

   • Job loss or reduced income

   • Divorce

   • Medical bills

   • Death of a co-borrower

   • Unexpected expenses

   • Increased cost of living

   • Disability

If paying your mortgage is no longer possible, you qualify for hardship.

2. The Home Is Worth Less Than the Mortgage

If you owe more than the home can sell for in today’s market, you’re considered “underwater.”

3. You Can’t Afford Payments Now or Soon

The lender will ask for documents—but don’t stress.

We handle that for you.

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How Long Does a Short Sale Take?

This is the honest answer:

30–120 days, depending on:

   • Your lender

   • Documentation

   • Buyer strength

   • HOA or tax liens

   • Whether there was a previous denial

But with the right process, it moves MUCH faster than foreclosure.

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What Are the Benefits of a Short Sale?

   • Stops a foreclosure

   • Protects your credit far better than a foreclosure

   • Lets you stay in the home longer during the process

   • May offer relocation assistance (cash for keys)

   • Allows you to move on financially

   • Gives you control over your outcome

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Can You Stay in the Home During the Short Sale?

Yes — and we’ll cover this fully in a later post.

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Why You Should Never Do a Short Sale Alone

Lenders have entire departments dedicated to loss mitigation. The process can be frustrating without someone who already knows their playbook.

We handle:

✔ Documentation

✔ Negotiations

✔ Buyer coordination

✔ Timelines

✔ Communication with the lender

✔ Approval strategy

You just focus on your next steps.

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Ready to Talk Through Your Options?

Your situation may feel heavy right now — but you have options, and you don’t have to navigate them alone.

Short Sale Experts – Powered by Elevated Realty Group

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