Wondering how much commission is paid on a short sale? This guide explains who pays it, typical percentages, and how it works differently from traditional sales.
Do Short Sales Take Longer to Close? What Homeowners Should Expect in 2025
Do Short Sales Take Longer to Close?
If you’re exploring options to avoid foreclosure, you may have heard that short sales can drag on for months. It’s true: short sales generally take longer to close than traditional home sales. But by understanding why — and preparing properly — homeowners can reduce surprises and improve the chances of a smooth transaction.
Why Short Sales Typically Take Longer
Here are the main reasons a short sale often extends beyond the usual 30-45 day closing window of a standard sale:
> Lender approval: Unlike traditional sales, a short sale requires the seller’s mortgage lender (or lenders) to approve the deal. This means they must agree to accept less than what’s owed on the mortgage. This additional layer of review often adds weeks or months.
> Multiple parties involved: If there’s a second mortgage, home equity line, or other lien (like unpaid HOA dues or tax liens), each party has to sign off on the sale.
> Document-heavy process: Homeowners must submit extensive financial documentation to prove hardship, along with detailed short sale packages. If paperwork is missing or incorrect, it causes delays.
> Negotiations: Even once an offer comes in, the bank may counter or take time to verify the home’s value via broker price opinions (BPOs) or appraisals.
How Long Do Short Sales Take to Close?
> In 2025, a typical short sale might take 60 to 120 days from offer to closing, though some take longer.
> Much depends on the lender’s responsiveness, whether there are multiple liens, and how complete the initial short sale package is.
For a more detailed look at each step, check out our Short Sale Stages guide.
Can You Speed Up the Short Sale Timeline?
Homeowners can’t always control the lender, but there are ways to keep things moving:
> Work with an experienced short sale specialist. Agents who handle short sales regularly know how to compile solid packages and communicate with lenders efficiently. Learn more about how we help at Why Choose Us.
> Provide complete documents upfront. Missing pay stubs, bank statements, or hardship letters are common reasons files get kicked back.
> Stay available. Respond quickly if your agent or the bank asks for updated info.
Short Sale vs Foreclosure Timeline
While short sales may take longer than a regular sale, they usually close faster than waiting for a foreclosure to complete. And unlike foreclosure, a short sale gives you more control over the process and potentially less damage to your credit. See our comparison here: Short Sale vs Foreclosure.
Talk to a Specialist Early
If you’re worried about time frames and want to avoid foreclosure, talking to a professional early is key. We can help you understand realistic timelines based on your specific situation. Visit our Homeowners page or Contact Us today to get started.
For more on typical timelines and lender processing, visit:
https://www.consumerfinance.gov/ask-cfpb/what-is-a-short-sale-en-133/
What's the Most Common Alternative to a Short Sale?
Loan modification is the most common alternative to a short sale—but is it the right fit for you? Learn the pros, cons, and when each option makes sense.
Why Do Sellers Choose a Short Sale?
When faced with financial hardship or an upside-down mortgage, many homeowners turn to short sales as an alternative to foreclosure. But what drives this decision? Here’s a breakdown of the most common reasons sellers opt for a short sale.
Do You Still Owe After a Short Sale?
Do homeowners still owe money after a short sale? Learn how deficiency balances work, when you can be pursued, and how to protect yourself from post-sale debt.
What Is a Reasonable Offer on a Short Sale?
Submitting a reasonable offer on a short sale can be the difference between approval and rejection. In this post, we explore what makes an offer “reasonable,” how banks evaluate them, and tips for standing out in a competitive market.
Who Benefits from a Short Sale?
A short sale can be more than just a financial lifeline for struggling homeowners—it also helps lenders, agents, and even entire communities. Learn who truly benefits from a short sale.
What Is the Short Sale Method?
The short sale method allows homeowners to avoid foreclosure by selling their property for less than the mortgage owed. This post explains how and why this method works, who it helps, and what makes it different from other options.
What Is the Difference Between a Short Sale and a Foreclosure?
Understanding the difference between a short sale and a foreclosure could save your credit, finances, and long-term housing options. This guide breaks down the core differences so homeowners can make an informed decision when facing mortgage trouble.
Who Pays Closing Costs in a Short Sale?
Understanding who pays closing costs in a short sale can help homeowners avoid unexpected fees and better navigate their financial future. This post breaks down what to expect and how these costs are usually handled.
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