Short Sale Basics


  • Seller lists the San Diego North County property for sale.
    • North County Realtor markets the North County home as normal.  In the San Diego MLS the short sale must be identified as such.   Short sales usually sell at between 90% to 110% of fair market value.
    • The listing agent starts to put together a complete short sale package on the North County home.
  • Potential buyer makes an offer on the San Diego North County property.
  • Purchase offer is then presented to North County seller for acceptance.
  • After acceptance by the seller of the North County buyer’s offer, the purchase contract and the short sale package are submitted to the lender.
  • WAIT, WAIT, and more Waiting.   Short sale approvals from the lender on your North County home purchase often takes 90-120 days.
  • Renegotiate after lender approval.  The short sale lender approval often includes many additional conditions reguarding other lein holders or vendors.  Short sale lenders often limit how much junior lein holders can be paid.  Short sale lenders also limit North County Realtor commissions.
  • When the lender conditions are agreed to by all of the parties then the purchase agreement can move forward.  When everything is done escrow can be closed,  Lenders, after taking their time in approving the sale, usually want a quick closing after giving approval.
  • If the lender conditions are not agreeable, the purchase agreement is cancelled and the San Diego North County property is put back on the market or proceeds to foreclosure.


Find out  “How to Qualify for a Short Sale.”  Find, “What are the Advantages of a Short Sale.”  And, see “Short Sale Supporting Documentation” a lender may need.  For more information on short sales, contact Gary Harmon, your North County Realtor and certifiedShort Sale Specialist.”