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Capstone Real Estate Insights

What Is a Short Sale and How Does It Work?

A short sale may allow a homeowner to sell a property for less than the loan balance with lender approval.

Nikky Yang Victorino • Feb 15, 2026

Many homeowners hear the term short sale but are unsure what it means.

A short sale occurs when a lender agrees to accept less than the amount owed on the mortgage to allow the property to be sold.

A short sale may be considered when:

The mortgage balance exceeds market value

The homeowner has experienced hardship

The homeowner can no longer afford payments

The lender agrees the short sale is a better outcome than foreclosure

Benefits may include:

Avoiding foreclosure

Reducing credit impact compared to foreclosure

Providing a structured exit strategy

Every situation is different and lender approval is required.

If you are behind on payments or considering your options, contact Capstone Realty & Associates.

Capstone Realty & Associates
(727) 301-7855
cs@capstonerealestate.us

General information only. Consult your attorney and tax professional for advice.