A short sale means selling your home for less than what's owed on the mortgage, with your lender's approval. It's slower and more paperwork-heavy than a normal sale — but for the right situation, it can be a meaningfully better outcome than letting a foreclosure run its course.
What a short sale is in Seminole County in 2026: A short sale lets you sell your home for less than you owe when your lender approves the payoff, and it can be an alternative to foreclosure if you face a hardship. The lender must approve the price and terms, and approval is never guaranteed. A HUD-approved housing counselor offers free advice. Ray and Kelly Nadeau of Certainly Sold handle short sales. Call (407) 544-4704.
By Ray Nadeau · Licensed Florida Broker BK3344407 | Kelly Nadeau · Licensed Florida Broker BK3344334 · Certainly Sold · Last updated: October 22, 2026
A short sale happens when your home is worth less than what you owe on the mortgage — so the sale proceeds fall "short" of paying off the loan in full — and your lender agrees in advance to accept that lower payoff rather than pursue foreclosure. It's a negotiated outcome, not an automatic right, which is why the process takes real time and documentation.
Generally requires a documented financial hardship and a home worth less than the payoff amount. Your lender will ask for proof of both.
Priced realistically for current market conditions — an inflated price just slows lender approval down.
Financial documentation, a hardship letter, and the purchase offer all go to the lender's loss mitigation department for review.
This is usually the longest step — lenders can take anywhere from a few weeks to several months to respond, depending on the servicer and whether a second lien is involved.
Once approved, the sale closes like a standard transaction — the lender accepts the negotiated payoff amount at closing.
It depends on the terms your lender agrees to. Some short sale approvals include a full release of the remaining debt (called a "deficiency waiver"); others leave the lender the right to pursue that difference later, called a deficiency judgment. This is exactly the kind of term that needs to be confirmed in writing before you close — not assumed. An attorney reviewing the approval letter before closing is genuinely worth it here.
Both hurt your credit, but a short sale is generally viewed as somewhat less damaging and easier to recover from than a completed foreclosure — largely because it shows the debt was resolved through a negotiated sale rather than a forced one. Neither is a small hit, and the exact impact depends on your overall credit profile, not just this one event. See our short sale vs. foreclosure comparison for the fuller picture.
From listing to closing, a short sale commonly takes several months longer than a standard sale, mostly due to lender review time. See our dedicated short sale timeline breakdown for a stage-by-stage estimate.
No. Real estate commission on a short sale is typically paid at closing, often as part of the lender-approved payoff, the same as a standard listing — not out of your pocket, and never upfront.
Yes — a short sale only works if your lender agrees in advance to accept less than the full payoff. That approval is the whole process.
No. A short sale is a voluntary, negotiated sale that avoids foreclosure entirely if completed before a sale date. See our full comparison for the specific differences.
Yes, but both lienholders generally need to agree to the terms, which typically extends the approval timeline. This is worth flagging to your agent and lender early.
This page is for general educational purposes and is not legal, tax, or financial advice. For legal rights and deadlines specific to your situation, consult a licensed Florida attorney or a free HUD-approved housing counselor.
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Mortgage financing services are offered through Equity Smart Home Loans, CA NMLS #856170, DRE #01906808, 1499 Huntington Dr Suite 500, South Pasadena, CA 91030 (Florida license MBR-2341). Ray Nadeau, Mortgage Loan Originator, NMLS #1027617. All loan programs, terms, eligibility and approvals are subject to borrower qualification, property qualification, underwriting guidelines, condominium project requirements, lender requirements, and program availability. Not all borrowers, properties, or condominium projects will qualify. Nothing on this website constitutes a commitment to lend or a guarantee of financing.
Real estate brokerage services and mortgage financing services are separate services. Consumers are not required to use Equity Smart Home Loans or any particular mortgage lender as a condition of listing, selling, purchasing, or otherwise using Certainly Sold's real estate brokerage services. Consumers are free to choose the lender and other settlement service providers of their choice.
Condominium financing availability may depend on borrower qualifications, property characteristics, condominium project eligibility, association financials, insurance coverage, reserves, special assessments, litigation, occupancy, and individual lender/program requirements. References to alternative or specialized financing options do not mean every borrower, property, or condominium project will qualify.
Any property value, condo value, comparative market analysis, or saleability review provided through this website is for informational purposes only and is not an appraisal. No representation or guarantee is made regarding a property's market value, eventual sales price, financing availability, or successful closing.