- 1). Contact your home mortgage lender and advise that you are interested in pursuing a short sale of your property.
- 2). Obtain a written agreement from your mortgage lender to discount the balance due on your loan. This agreement is crucial if the current market value of your home is below what is due on the loan. A discount on your loan means that the lender reduces the amount owing on the loan to a point that best ensures a sale will cover the balance due.
- 3). Place your home or other real estate on the market, understanding that you are able to seek a sales price that is far more favorable than what otherwise would be the case absent a discount agreement from the mortgage lender. The process of obtaining this agreement from your lender and offering the real for sale in this manner is what legally is known as a "short sale."
- 4). Enter into a contract for sale with a potential buyer at a price that is at least equal due the discounted or reduced amount due on the mortgage loan.
- 5). Close on the sale. The proceeds from the transaction are used to fully satisfy your home mortgage loan.
- 6). Request a written affirmation from the mortgage lender that your account is paid in full.
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