One of the most common questions homeowners ask is, “Can I have money in savings and still qualify for a short sale?”The answer depends on your mortgage lender, loan type, investor
What Is a Short Sale?
Dated: July 3 2026
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If you are struggling to make your mortgage payment or you owe more on your home than it is worth, you may have heard the term short sale. Most people have, but very few know what it actually means.
A short sale happens when a homeowner sells their home for less than what is owed on the mortgage and the lender agrees to accept the lower payoff. It is not something a homeowner can do on their own because the lender has to approve the sale before it can close.
Every short sale is different. Some homeowners have lost a job. Others have gone through a divorce, experienced health issues, had an unexpected financial hardship, or simply found themselves in a situation they never expected. Life happens and sometimes keeping a home is no longer the best option.
One of the biggest misconceptions is that a short sale is just like a traditional home sale. It is not. There is a lot happening behind the scenes. Financial documents have to be submitted, negotiations take place with the lender, deadlines have to be managed, and there are often unexpected challenges that have to be worked through along the way.
The good news is that foreclosure is not your only option. A short sale can provide a way to move forward while avoiding many of the challenges that come with foreclosure. The sooner you start the conversation, the more options you are likely to have.
I have been helping homeowners navigate short sales since 2013, and one thing I have learned is that no two situations are ever the same. If you are not sure what your options are, reach out. Even if a short sale is not the right fit, I am happy to help point you in the right direction.
Jenny Olson-Paden
I got my start in 2013 with Team Olson Properties, where I jumped straight into short sales and REOs. It was messy, complicated, and exactly where I needed to be. That’s also where I created Sho....
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