You owe more than the home is worth. A short sale may be an option.

A short sale is simple to say. You sell the home for less than you owe. The sale does not cover the full loan. So the loan comes up short. That is where the name comes from.

Here is the catch. Your lender must agree to take less. That call is theirs, not ours. It is never a sure thing.

A short sale is not a way to keep the home. It is a way to sell it and move on. If your goal is to stay, this page is not your first stop.

A short sale fits a narrow spot. Usually three things are true at the same time.

First, you owe more than the home is worth. People call that being underwater. Second, you cannot catch up on the past-due amount. Third, you would rather sell than let it go to auction.

If instead you want to keep the home, start elsewhere. Call your lender or loan servicer first. Then call a HUD-approved housing counselor. Many help for free. You can find one at https://www.hud.gov/findacounselor. Then talk to a lawyer. Those calls come before us. This is education, not legal advice.

The steps are plain. We price the home honestly. A fair price draws real buyers fast. Then we list it and market it, with as much privacy as you want.

A buyer makes an offer. That offer does not go to you alone. It goes to your lender, with a package. You and we put that package together. It lays out your hardship and the numbers.

Then the lender decides. They can approve the offer. They can counter it. Or they can decline. It is their call, every time. We do not negotiate your loan for you. We list and market the home. You and your lender make the deal.

Timing matters. The clock does not stop while you wait. A Notice of Default starts it. By law, at least three months must pass before a sale can be set (Civil Code §2924). So a clean file, sent early, helps. This is education, not legal advice.

A short sale ends with the home sold. What about the rest of the loan? That depends on your loan and your lender.

In California, many owner-occupied first loans come with some relief on what is left. But rules vary. Taxes vary too. We cannot promise any outcome here. Ask a lawyer or a tax pro about your own case. This is education, not legal advice.

One more thing. We cannot promise what a short sale does to your credit. We cannot promise a lender waives what you still owe. No one can promise you that. Those answers depend on your file and the law.

Francisco Williams, CCIM, leads the commercial value work on distressed files. We are licensed California real estate professionals, not lawyers or tax advisors.