About half of callers do not need one
The payoff comes back lower than feared, or nearby sales come in higher, and a normal sale covers everything. We work out your real position first.
Denver and the Front Range
If the payoff on your home is more than a sale would net, you may not have to bring the difference to closing. We work out where you actually stand before you decide anything, and it costs you nothing.
A live person answers, not a robot and not a phone tree.
The payoff comes back lower than feared, or nearby sales come in higher, and a normal sale covers everything. We work out your real position first.
A short sale still has to sell, but the lender approves the terms. A weak documentation package is the most common reason an approval stalls.
Colorado lenders have six years to pursue the shortfall. Releasing the lien is not the same as releasing you. That sentence has to be in writing.
The federal exclusion expired at the end of 2025. Insolvency may still cover it. Ask a CPA before you sign an approval letter.
Most people call us already convinced they need a short sale. About half of them do not. The payoff quote comes back lower than they feared, or recent sales nearby come in higher, and a normal sale covers everything with money left over.
So we start by working out your actual position: the payoff on every loan and lien against the property, a realistic sale price from recent comparable closings, and what the sale nets after commission, title and closing costs. That number decides the path. It costs you nothing and it does not commit you to listing.
If it turns out you do need a short sale, we handle it from there.
Payoff quotes on every lien, comparable closed sales, and the cost of selling. You see the gap in writing before deciding anything.
Lenders approve on documentation: hardship letter, financials, the listing history and a valuation they accept. A weak package is the most common reason approvals stall.
A short sale still has to sell. It is priced and marketed like any other listing, with buyers told upfront that lender approval is required.
This is the part that takes time. We push for terms that release the lien and, where the lender will agree, waive the deficiency in writing.
In a typical short sale the lender pays commission from the proceeds, so it does not come out of your pocket. Your approval letter sets the final terms.
The deficiency waiver. A lender releasing its lien so a sale can close is not the same as a lender giving up its right to pursue the shortfall. In Colorado a lender has six years to come after a deficiency. Whether your approval letter waives that is the single most important sentence in the document, and it is negotiated, not automatic.
The tax treatment. The federal exclusion that made forgiven mortgage debt tax-free on a primary residence expired at the end of 2025. Forgiven debt in 2026 is generally taxable unless an exception such as insolvency applies. We cannot give tax advice, but we will make sure you are asking a CPA the right questions before you sign anything.
Plenty of short sales close without either being addressed properly. That is usually what separates a clean outcome from a surprise a year later.
None of it has to be perfect. It just makes the first call useful instead of general.
In a typical short sale the lender pays the real estate commission out of the sale proceeds, so it is not money out of your pocket. Your approval letter sets the final terms, and we go through it with you before you sign.
Longer than a normal sale. The listing period is the same, but lender review after you have an accepted offer commonly adds one to four months depending on the lender, the loan type and whether there is a second lien.
No one can promise that, and be wary of anyone who does. Approval depends on your documented hardship, the lender's own valuation and the offer itself. What we control is the quality of the package, and that is what most approvals turn on.
Usually, for two reasons. The credit impact is shorter, and the waiting period to buy again is four years conventional versus seven after a foreclosure. It also gives you a negotiated deficiency outcome rather than whatever the lender decides on its own.
Not necessarily. Some lenders require a demonstrated hardship rather than actual missed payments. Calling before you fall behind usually leaves more options open, not fewer.
Denver and the surrounding Front Range, including Aurora, Centennial, Littleton, Castle Rock, Parker, Highlands Ranch, Arvada, Westminster and Thornton. Short sale rules are Colorado state law, so the process is the same across the metro.
Every agent at Kenna Real Estate Group is trained to look past finishes.
What is cosmetic. What is structural. What a repair actually costs.
On a short sale that matters more than usual. The lender orders its own valuation, and condition drives a large part of what that valuation says. Knowing which problems are real and which only look bad is often the difference between an approval that works and one that stalls.
It is the same reason we publish this material at all. If you can get the answer here, you should not have to call anyone to get it.
Call or text and we will work out your real position. No cost, no obligation to list, and no pressure toward a short sale if you do not need one.