How Long Does a Short Sale Take? A Timeline Breakdown

5 November 2025

Buying or selling a home through a short sale can feel like a marathon rather than a sprint. If you’re wondering how long the process takes, you’re not alone. Unlike traditional home sales, short sales involve multiple parties, lots of paperwork, and patience—lots of it.

In this guide, we’ll break down the timeline of a short sale, covering everything from listing the property to closing the deal.

What is a Short Sale?

Before we dive into the timeline, let’s clarify what a short sale is.

A short sale happens when a homeowner sells their property for less than what they owe on the mortgage. The lender agrees to accept a lower amount to avoid foreclosure. While this process benefits both the homeowner and the bank, it’s far from speedy.

Why? Because banks need to review the offer, assess the property, and approve the terms before anything moves forward.

So, if you’re considering a short sale, buckle up—it’s going to take some time. But exactly how long does a short sale take? Let’s break it down.

A Step-by-Step Timeline of a Short Sale

Each short sale is unique, but on average, the process can take 3 to 6 months—or even longer in some cases. Here’s a general breakdown:

Step 1: Hiring a Real Estate Agent and Listing the Property (1-2 Weeks)

The first step in a short sale is for the homeowner to hire an experienced real estate agent who knows the ins and outs of short sales.

Once the agent is on board, they’ll:
- Assess the home’s value
- Take photos and list the property
- Market the home to potential buyers

Finding the right buyer may take time, but a well-priced home in a hot market can attract offers quickly.

Step 2: Receiving and Accepting an Offer (1-4 Weeks)

Once offers start coming in, the homeowner reviews them and chooses the best one. Unlike a traditional sale, accepting an offer in a short sale doesn’t mean the deal is done—it just starts the next phase.

The lender must approve the offer before anything becomes official. This is where the waiting game begins.

Step 3: Submitting the Short Sale Package to the Lender (2-4 Weeks)

After the seller accepts an offer, their real estate agent submits a short sale package to the lender. This package includes:
✅ The buyer’s offer
✅ The seller’s financial hardship letter
✅ Proof of income and bank statements
✅ Comparable market analysis (to justify the offer)

Most lenders take at least 2 to 4 weeks to review these documents before moving forward.

Step 4: Lender’s Review and Approval (30-90 Days)

This is where things really slow down. The lender reviews the short sale package and decides whether to approve, reject, or counter the offer.

Factors that influence the lender’s decision:
- The home’s market value
- The seller’s financial situation
- Whether the offer meets the bank’s minimum requirements

If multiple lenders are involved (for example, a second mortgage or home equity loan), expect additional delays.

Approval timelines generally fall within 30 to 90 days, but some cases take even longer.

Step 5: Negotiations and Buyer’s Approval (1-3 Weeks)

Once the lender responds, one of three things happens:
1. Approval – The lender accepts the offer as-is.
2. Counteroffer – The lender wants the buyer to increase their offer.
3. Rejection – The lender declines the offer altogether.

If a counteroffer happens, the buyer must decide if they want to proceed. This can add 1 to 3 extra weeks to the process.

Step 6: Finalizing the Sale and Closing (30-45 Days)

If the offer is approved and the buyer accepts the terms, the deal moves to closing.

At this stage, the buyer:
✔️ Finalizes their mortgage
✔️ Completes inspections
✔️ Signs all necessary paperwork

On average, closing takes 30 to 45 days, just like a regular home sale.

Why Do Short Sales Take So Long?

A short sale can feel like waiting for water to boil—slow and frustrating. But why does it take so long?

Here are the main culprits:

1. Lender’s Approval Process

Banks don’t rush into short sales. They carefully evaluate whether accepting less than what’s owed is worth it.

2. Multiple Lenders Involved

If the homeowner has multiple loans, each lender must agree to the sale. Negotiating with two or more banks adds complexity and time.

3. Incomplete Paperwork

Missing documents or errors in the short sale package can send everything back to square one.

4. Negotiations and Counteroffers

If the lender counters the offer and the buyer pushes back, the back-and-forth can stretch the timeline.

5. Market Conditions

If home prices are rising, the lender might hold out for a better deal. If prices are falling, they may move quicker to cut their losses.

Can a Short Sale Be Faster?

Yes—under the right conditions, a short sale can close in as little as 60-90 days. Here’s what helps speed things up:

✔️ Working with experienced professionals – A skilled real estate agent and attorney can navigate the process more efficiently.
✔️ Submitting a complete short sale package – Incomplete paperwork is one of the biggest delays.
✔️ Having only one lender – If there’s only one mortgage, the approval process moves faster.
✔️ The buyer pays in cash – No mortgage approval means fewer delays.

If all stars align, a short sale can move quickly. But in most cases, be prepared to wait.

Is a Short Sale Worth the Wait?

That depends on your situation.

For buyers, a short sale can be a great opportunity to snag a home below market value. But you’ll need patience—you won’t get the keys overnight.

For sellers, a short sale helps avoid foreclosure and minimize credit damage. But the wait can be stressful, especially if finances are tight.

Ultimately, if you’re willing to play the long game, a short sale can be a win-win for both buyers and sellers. Just don’t expect a quick turnaround.

Final Thoughts

So, how long does a short sale take? Anywhere from 3 to 6 months on average—but sometimes longer.

While short sales require patience, they can be well worth it for the right buyer or seller. If you’re thinking about pursuing one, make sure you have the right team by your side to make the process as smooth as possible.

Need help navigating a short sale? Reach out to a real estate agent who specializes in short sales to guide you through the process.