What is a short sale?
A short sale is a sale where the house sells for less than the mortgage balance, and the lender agrees to accept the sale money as payment, in whole or in part. It is not automatic. A free HUD-approved housing counselor can explain how it would work with your lender. The lender decides.
For example, if you owe $150,000 and the house would sell for $130,000, the $20,000 gap is the "short." Your lender has to approve selling at the lower price before a closing can happen.
Want a cash offer, or to have us take over the payments? Call or text Charlie at (318) 714-4321, or Get My Cash Offer. Cash is not promised on every house. No fee, no obligation.
Does the lender have to agree?
No. The lender chooses, and it generally wants to see a reason. Most ask for a hardship letter, income and bank records, a purchase offer, and proof the house is really worth less than the loan. There are no guarantees.
Every lender and loan type has its own process, so ask your servicer what its short sale process is. Put the request in writing and keep copies.
How long does a short sale take?
It often takes months, not weeks. The lender has to review your paperwork, check the value of the house, and approve the buyer's price, and each step can take a while. If there is a second mortgage or another lien, that lender has to approve too.
That timing matters if a foreclosure has already started. A lender may not wait on a sheriff's sale date while it reviews a short sale request. Ask your servicer, in writing, whether the sale will be paused while the request is open.
Will I still owe the difference?
It depends on the lender's written approval letter. Some approvals clearly say the lender accepts the sale money as payment in full. Others say nothing about the leftover amount, or say the lender reserves the right to pursue it. Do not close until you have read that language, and have a lawyer read it if it is unclear.
A few more things to keep in mind:
- Releasing the lien is not the same as forgiving the debt. A lender can release its mortgage on the house and still say you owe the balance.
- Get it from every lender. A second mortgage or a lien needs its own written approval.
- Forgiven debt can matter at tax time. Ask a CPA, because we can't give tax advice.
How is this different from foreclosure in Louisiana?
In a short sale you and the lender agree to a sale before the sheriff sells the house. In a foreclosure the court orders it sold at a sheriff's sale. The deficiency rules are different in each.
In a Louisiana sheriff's sale, whether the lender can come after you for the rest generally depends on whether the house was sold "with" or "without" appraisement. Without appraisement, the lender generally cannot get a deficiency judgment, though there are exceptions. That rule does not carry over to a short sale. In a short sale, your agreement with the lender, in the approval letter, is what counts. You can read more on how foreclosure works in Louisiana.
Both can affect your finances for years afterward. How much depends on the lender and your history, so ask a HUD counselor what to expect.
Your options, with the free ones first
A short sale is one choice among several, and not always the best fit.
- A free HUD-approved housing counselor. They can review your numbers and talk to your servicer. Search the HUD counselor list or call Catholic Charities of North Louisiana in Shreveport.
- Your servicer, in writing, about a repayment plan, modification or forbearance that could fix the problem instead.
- A lawyer, to read the approval letter, advise on a deficiency, or talk about bankruptcy.
- List it with a Realtor, if the lender will approve a short sale and you have time. If that fits you better, we'll say so.
- Sell it to us, if the numbers allow. If the house is worth about what you owe, or you can cover the gap, we may buy it as it sits and the loan is paid off at closing.
- Have someone take over payments. Some owners can hand the house to a buyer who takes over the payments. We discuss that as a possibility. Your loan papers may limit it, so check with your servicer or a lawyer first.
We buy houses. We are not a short-sale negotiator or a foreclosure-relief service. We do not negotiate with your lender for a fee or for anything else, and we charge homeowners no fee.
When we can help, and when we can't
If you owe less than the house would sell for, or roughly the same, we can usually work with that. We look at the house and your payoff, lay out what we could do, and go over it with you on paper. A local title company handles the closing and pays your lender out of the sale.
If you owe much more than the house is worth, a regular sale won't pay the loan off. In that case the lender has to approve a short sale, and the lender is the one you deal with, along with your counselor or lawyer. We'll tell you honestly if that is where you are, and point you to the right people.
Why talk to The LN Co
We are a local company in Keithville. We buy houses in Shreveport, Bossier City and DeSoto Parish, and we sell homes on rent to own. Charlie takes our seller calls, so you'll talk to someone who knows the area.
Updated November 1, 2026