Short Sale Calculator
Calculate deficiency amount and short sale loss from loan balance, market value, and closing costs. Free, fast, and private.
How it works
Short sale calculations determine the financial impact when selling a property for less than the mortgage balance. The deficiency amount shows how much debt remains unpaid, while the short sale loss represents the lender's financial loss.
Example
Loan balance $350,000, market value $300,000, closing costs $15,000. Net proceeds: $285,000. Deficiency: $65,000. Short sale loss: $65,000.
FAQ
What is a short sale in real estate?
A short sale occurs when a property is sold for less than the outstanding mortgage balance, requiring lender approval to accept less than what is owed.
What is deficiency amount in a short sale?
The deficiency amount is the difference between the loan balance and the net proceeds the lender receives after the sale, representing the unpaid debt.
Who pays closing costs in a short sale?
Closing costs are typically deducted from the sale proceeds before the lender receives payment, reducing the net amount available to pay down the loan.
Can lenders pursue borrowers for deficiency amounts?
It depends on state law and the loan terms. Some states are non-recourse, while others allow lenders to pursue borrowers for deficiency judgments.
How does a short sale affect credit score?
Short sales typically have less negative impact on credit than foreclosures, but still result in significant score reduction and remain on credit reports for 7 years.