Accepting a short sale offer is a major step toward avoiding foreclosure, but rushing into the wrong deal can derail your efforts. Some offers are designed to stall the process, lock up your property, or even take advantage of desperate sellers. Below, we’ll walk through the red flags, must-haves, and expert advice on how to spot the real deal.

Why Vetting Offers Matters

Short sales involve mortgage lenders agreeing to accept less than the full amount owed. That makes lenders cautious, and they won’t entertain unserious offers. If a bad offer makes it to the bank, it could trigger delays or a flat-out rejection.

1. Check for Proof of Funds or Pre-Approval

Legit Buyers Provide Documentation.
A qualified buyer should include either:

> A mortgage pre-approval letter from a recognized lender, or

> Proof of funds (bank statement or verified letter) for cash offers.

If this is missing, the buyer likely isn’t serious.

2. Avoid “Contingency Stackers”

Offers full of escape hatches like “subject to inspection,” “subject to financing,” or “subject to property resale” should raise eyebrows. A legitimate buyer will commit within the typical contingencies—not use them to tie up your home indefinitely.

3. Review the Earnest Money Deposit

Small or missing deposits are a warning sign. Legitimate short sale buyers usually include:

> 1–3% of the purchase price as earnest money

> A clear escrow timeline

If there's no skin in the game, the buyer has nothing to lose by backing out.

4. Watch for “Investor” Language with Vague Intentions

Many investors buy short sales—but be cautious with those who:

> Provide no business credentials

> Don’t disclose their exit plan

> Can’t verify access to capital

Some buyers simply want to assign your contract to another buyer for profit. That’s not always bad, but it needs to be disclosed.

5. The Buyer’s Agent Should Know Short Sales

Ask this: Has the buyer’s agent closed short sales before?
An inexperienced agent can tank a deal by mishandling the paperwork or deadlines. That’s why we also recommend working with experienced short sale professionals.

6. Offers Without Timelines Are a Red Flag

Serious buyers follow the process:

> Offer → Acceptance → Lender Submission → BPO/Appraisal → Approval → Close

If the buyer isn’t pushing forward or their agent doesn’t follow up, they may just be testing the waters.

7. Know When to Walk Away

Even if your home is headed for auction, accepting a bad offer can be worse than holding out. A real estate attorney or experienced short sale team can help review your situation and timeline.

If you’re not sure, visit our Homeowners Page to get the right help fast.

Final Tips: Partner With Pros

The safest way to avoid illegitimate offers is to work with specialists. Short sales are complex, but we handle them every day and can help guide you to the best outcome. Visit our What Is a Short Sale page for a full overview of the process, or contact us directly to get matched with an experienced local agent.