Sometimes you don’t want a long explanation — you just want to know what a short sale is, fast. That’s exactly what Keith Jones delivers in this 60-second clip. “For those of you who do not know what a short sale is,” he says, “a short sale is when you need to sell your home but your home is worth less than what you owe the lender, and now you need the lender’s approval to sell that home. That is called a short sale. There you go.” That’s the whole idea in one breath. Below are quick, honest answers to the questions Florida homeowners ask right after they hear that definition.
The one-sentence version
A short sale is selling your home for less than you owe, with your lender’s written approval. Two ingredients, both required: you’re underwater (the home is worth less than the mortgage balance), and the bank agrees to accept the sale proceeds as settlement even though they fall short of the full payoff. If either piece is missing, it isn’t a short sale.
Is a short sale the same as a foreclosure?
No — and the difference matters a lot. A foreclosure is something the lender does to you through the courts; a short sale is something you do, with the lender’s sign-off. A completed short sale is generally lighter on your credit and lets you leave on a planned date instead of being removed after an auction. We lay the two side by side in short sale vs. foreclosure.
How is it different from a normal sale?
In a regular sale you set the price and keep whatever is left after the mortgage is paid. In a short sale there’s nothing left over — the lender is already taking a loss — so the bank, not you, has the final say on price and terms. That single fact shapes the entire process, which we walk through in how to process a short sale.
Will I still owe the difference afterward?
Not if it’s negotiated correctly. The gap between what you owed and what the home sold for is called a deficiency, and in Florida a lender can sometimes pursue it. A well-handled short-sale approval letter includes a waiver of that deficiency, so when the deal closes, the debt is truly finished. “We’ll release the lien” is not the same as “we won’t come after you for the balance” — you want the second one, in writing. More on that in how to close out a short sale.
Does a short sale cost me anything out of pocket?
Usually not. In most short sales the lender allows standard closing costs — title, the agent’s commission, and similar — to be paid out of the sale proceeds rather than by you. And if you sell to a cash buyer like us, there are no commissions or fees on our side at all. You should still budget for your own move and confirm the specifics, but a short sale is generally not something you pay to do.
How long does it take?
Plan on patience. Because the bank has to review the hardship package, order a valuation, and approve the buyer’s offer, a Florida short sale commonly runs several weeks to a few months — longer if there’s a second mortgage, since that lender has to agree too. The single biggest accelerator is a clean, reliable offer the bank can act on without worrying about financing falling through.
Who actually has to approve it?
Your lender’s loss-mitigation department — not the local branch. They’re weighing one question: will approving this sale net us more than foreclosing would? If you have a second lien or a HELOC, that lender must approve as well. Keith explains the lender’s thinking in why banks approve short sales.
How do I know if I even qualify?
Two boxes: negative equity (you owe more than the home is worth) and a hardship (a real reason you can no longer afford the payment — job loss, divorce, medical issues, a death in the family, military orders, or a payment that jumped). If both describe you, a short sale is worth exploring. If only one does, there may be a better path.
What will it do to my credit?
A short sale does ding your credit — the loan typically reports as “settled for less than owed.” But the damage is usually shallower than a foreclosure, and many sellers recover and qualify for a new mortgage sooner. Exact impact depends on where your credit started and how many payments you missed along the way.
What’s the catch?
The honest one: the bank is in control and a short sale is never guaranteed. A complete, well-presented file with a solid offer gives you the best odds, but the lender can still say no or counter. That’s why experience matters — a file that’s priced right and documented well is far more likely to get a yes.
One more thing: you might not need a short sale at all
Here’s the part too many homeowners miss. A short sale only makes sense if you’re underwater. If you actually have equity — the home is worth more than you owe — you can simply sell, pay off the loan, and keep the difference. No bank approval, no waiting. Before you assume you need a short sale, it’s worth getting an honest read on what your home is worth today versus what you owe.
Where we fit in
That honest read is exactly what we offer. We buy houses for cash across Northeast Florida, and we’ll tell you straight whether you have equity, whether a short sale fits, or whether a different move serves you better — and if selling is the answer, we can be the reliable, no-financing offer a short sale needs. Request a no-obligation cash offer, watch the full short sale video guide, or call or text 904-606-9163.
This article is general information, not legal or tax advice. Consult a licensed Florida attorney, a CPA, or a free HUD-approved housing counselor at 800-569-4287 before deciding.