Can You Do a Short Sale on a Condo or Townhouse? What to Know

Thinking about a short sale for your condo or townhouse? You can absolutely do one—but there are a few extra steps to be aware of. HOA fees, association rules, and special assessments can impact how smoothly your short sale goes.

In this post, I’ll break down what to expect if you’re trying to sell a condo or townhouse through a short sale in North Jersey—and how to avoid common mistakes that can delay your closing.

What Is a Short Sale?
A short sale happens when a home is sold for less than what’s owed on the mortgage, with the lender’s approval. That includes single-family homes, condos, and townhouses.

Whether your property is a detached house or part of an association, the basic short sale meaning is the same: the bank accepts a sale price that’s “short” of the full balance owed.

How HOA Rules & Fees Can Impact a Short Sale
Condos and townhouses typically have a Homeowners Association (HOA) that sets rules and collects monthly fees. Here’s how that can affect your short sale:

🏢 HOA Fees Must Be Current: Most lenders require any past-due HOA fees to be paid before closing. If you’re behind on HOA dues, you’ll need to negotiate those payments during the short sale process.

🏢 Special Assessments: If the HOA has issued a special assessment (for big repairs or projects), that amount may also need to be paid off before the sale closes.

🏢 HOA Approval: Some associations have rules about approving new buyers or transfers. You’ll need to follow their process to avoid closing delays.

🏢 HOA Docs: The buyer’s lender will require HOA documents—such as a certificate of good standing, resale package, or budget report. Getting these early can save time.

Best Practices for Condo & Townhouse Short Sales
✔️ Work with a Short Sale Specialist: A short sale pro (like myself) knows how to handle HOA negotiations and keep your deal moving forward.

✔️ Communicate with Your HOA Early: The sooner you know what’s owed, the faster you can plan.

✔️ Watch for Surprise Fees: Some HOAs charge “transfer fees” or “move-out fees” at closing—know what to expect ahead of time.

Moving Forward: Expert Help for Condo & Townhouse Short Sales
A short sale on a condo or townhouse can absolutely work—but only if you know how to navigate the HOA side of things. I’m Johnny Rodriguez—North Jersey’s First AI-Certified Realtor—and I’ve helped sellers just like you close smooth, successful short sales on all kinds of properties.

👉 DM me “Short Sale Help” today and I’ll send you my free checklist: How to Prepare for a Condo or Townhouse Short Sale.

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