Pros and Cons of Doing a Short Sale When You’re Current on Mortgage Payments

Can you do a short sale even if you’re current on your mortgage? The answer is yes — but there are things to consider first.

According to a recent CoreLogic study, 7% of distressed property sales are initiated by homeowners who are still current on payments. Source: https://www.corelogic.com

A proactive short sale can sometimes be the smartest move — but it’s important to know the pros and cons before starting.
Learn more about me and how I help North Jersey homeowners on my About page.

What is a Short Sale

A short sale happens when you sell your home for less than what you owe — with your lender’s approval. Many ask, what is a short sale in real estate when you’re current on payments? It simply means your lender agrees to let you sell because of a hardship — even though you’ve kept payments up to date.

While being current can help your case, lenders will still require proof of financial difficulty or another valid reason for the sale.

Market Update

Thinking about a proactive short sale?
Start by checking local home values on my Market Update page. This will help you and your lender evaluate the market and your options.

Best Practices in Short Sales When Current on Payments

Here are the best practices for handling a short sale when you’re still current:

✅ Document Your Hardship
Even if you’re current, lenders need a hardship letter explaining why you can’t continue long-term.

✅ Get a Professional Market Analysis
A clear valuation from an expert in short sale real estate helps show your lender why a sale makes sense.

✅ Move Quickly
A proactive short sale is easier to approve before payments fall behind — starting early can protect your credit.

✅ Understand Credit Impacts
Even if you’re current, a short sale will still affect your credit — though typically less than foreclosure or missed payments.

✅ Work with an Experienced Agent
I specialize in short sale situations and can help streamline the process — and present your case to the lender effectively.

Moving Forward with Best Practices

Doing a short sale while current on payments is a smart move in many cases — but it requires careful handling. If you’re considering this option, I’m here to help you through every step.

Use my Mortgage Calculator to run your numbers — and see what’s possible with a proactive plan.

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