Pinnacle Real Estate Group - FL
Full-Service Real Estate on the Treasure Coast - Residential, Investment and Default Specialists
Need help with buying or selling your Treasure Coast property?
In some cases, yes. Relocation assistance may be available to help with moving expenses, depending on the loan type, timing, and how the sale is structured. Eligibility isn't automatic, and most homeowners don't know to ask about it.
No. Short sales are sold strictly as-is, and the lender will not pay for repairs or issue a credit for them. Buyers can still complete an inspection and walk away under an inspection contingency, but there's no repair negotiation with the lender or seller.
The federal tax exclusion for forgiven mortgage debt on a primary residence expired on January 1, 2026, after being extended repeatedly since 2007. Unless Congress passes a new extension, mortgage debt forgiven in a 2026 short sale is generally taxable income by default.
Not necessarily. Many lenders agree to a deficiency waiver as part of the short sale approval, meaning they agree in writing not to pursue the borrower for the remaining balance. This should always be confirmed in writing before closing.
Yes. Multiple liens, such as a second mortgage, a home equity line, or an HOA lien, don't automatically prevent a short sale, but each lienholder must separately agree to release its claim before closing.
A short sale typically does less damage to a borrower's credit than a foreclosure, and most borrowers can qualify for a new mortgage sooner afterward. The waiting period to qualify for a new mortgage after a short sale is commonly two to four years, often shorter than after a foreclosure.
Depending on the loan, a short sale can require approval from the loan servicer, the investor that owns the loan, a government insurer such as FHA, VA, Fannie Mae, or Freddie Mac, and any junior lienholders like a second mortgage or HOA lien. Each layer reviews independently.
The lender, and in many cases the investor that actually owns the loan, makes the final decision on price and terms, not the seller and not the listing agent. The lender bases its decision on its own valuation of the property.
Most short sales take three to ten weeks for lender approval once a fully signed contract and complete short sale package are submitted. The full transaction timeline often runs longer depending on the loan type and how many lienholders are involved.
Lenders compare the cost of a short sale to the cost of completing a foreclosure and reselling the property, and a short sale is frequently the cheaper, faster option. Foreclosure carries legal costs, vacancy risk, and resale time that erode the lender's recovery.
