10/06/2026
Three things about short sales that surprise most homeowners:
1. YOUR LENDER DOESN'T HAVE TO SAY YES.
No law requires a servicer to approve a short sale. They'll ask for pay stubs, bank statements, tax returns, a hardship letter — and then they decide. Get every condition in writing.
2. ONE APPROVAL ISN'T ALWAYS ENOUGH.
Got a second mortgage? A HELOC? A tax lien or a judgment? Each one of those is a separate "yes" you need. Federal rules define an approved short sale as one approved by ALL relevant parties. Find every lien on your property early — your county recorder's office can help.
3. THE LEFTOVER BALANCE MIGHT FOLLOW YOU.
Here's the big one: when the lender releases its lien so the sale can close, that is NOT the same as forgiving what you still owe. In Missouri, lenders can pursue the remaining balance after a short sale or foreclosure. The only thing that stops that is written waiver language in your approval letter. If the letter says nothing about the deficiency, don't assume you're clear.
And if anyone asks you to bring cash to closing or sign a brand-new promissory note as a condition of approval — have a Missouri-licensed attorney review it before you sign. That new note is a fresh, enforceable debt.
Educational only — not legal advice.