What is a Short-Sale?

A short-sale occurs when a home seller owes more on their mortgage than the home is worth in the current market.

Now more than ever, Banks are willing to negotiate short-sales. In fact, short-sales are estimated to become a much larger portion of the market-share in the several coming months. Currently, 7 out of 10 home-owners are walking away from their homes without talking to a professional. This phenomenon is not limited to a specific price-range or income level; the effects are far and wide.


We believe we can help. Lyon Real Estate has been invested in the greater Sacramento community for over 60 years; and we have assisted generations of our neighbors buy and sell their homes. We have recognized a need…and we're here to assist. Short-sales are not easy; the key is having a quality listing agent.

Lyon has implemented a series of advanced training short-sale continuing education courses for our agents; to ensure that Lyon agents are the most highly-trained real estate professionals in the area. With the completion of the courses, our agents are given the designation of Lyon Short-Sale Certification (LSSC).

Contact your agent directly for more information about buying or selling a short-sale property. Or click here to search for a Lyon agent.

What you need to know:

The sale needs to be approved by the seller's lender as they will be accepting an amount that is "short" of the total loan balance plus transaction costs.

Lenders typically approve short-sales for one of two reasons: first, the home seller has a "legitimate hardship" which typically include:

  • Loss of job
  • Business failure
  • Death of a spouse
  • Severe illness
  • Inheritance
  • Divorce
  • Separation
  • Mandatory job relocation
  • Medical bills
  • Military service
  • Mortgage (interest rate) adjustment
  • Reduced income (including furloughs)
  • Incarceration

Second, the home seller owes more to the lender than the home is worth in the current real estate market; a short sale is an attempt for the lender and home seller to avoid a foreclosure.

Disclaimer: Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.

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