5 Common Mistakes People Make When Considering a Short Sale

If you're behind on mortgage payments and stressed about what comes next, you're not alone. Many homeowners in your shoes are trying to figure out the best way to avoid foreclosure and protect their credit. One option you may be exploring is a short sale. But before you make a decision, it's important to understand the short sale pros and cons, and avoid the most common mistakes that can make a tough situation even harder.

Here are five missteps to watch out for (and how to avoid them):

1. Waiting Too Long to Ask for Help

A short sale isn't something you want to attempt at the last minute. Many people wait until foreclosure is weeks away before reaching out for help. At that point, options are limited and timelines are tight.

Why it matters: Short sales take time. You'll need to find a buyer, get your lender's approval, and work through paperwork. Starting early gives you more control and less stress.

Want to see the full process? This guide lays out the short sale steps in detail.

What to do instead: If you're struggling with payments and think foreclosure might be in your future, start exploring your options now. Tools like the Short Sale Advisor can help you quickly understand your situation and what steps to take.

2. Not Understanding the Full Picture

You might have heard that short sales are "better" than foreclosure, but it's not always that simple.

Why it matters: There are real pros and cons. Short sales can hurt your credit, but usually less than a foreclosure. They can also let you move on faster. But they involve paperwork, negotiations, and sometimes tax implications.

What to do instead: Take time to learn about the short sale pros and cons for your unique situation. A tool like Short Sale Advisor can walk you through it in plain language so you're not caught off guard later.

Use this checklist to make sure you’re prepared with the right documents before applying.

3. Assuming You Won't Qualify

Many homeowners assume they won’t qualify for a short sale and don’t even try.

Why it matters: Short sales usually occur when a homeowner owes more on their mortgage than the home is worth and can't keep up with payments. If that sounds like your situation, you might qualify.

What to do instead: Don’t self-disqualify. Use a tool like Short Sale Advisor to check your eligibility. It only takes a few minutes and could open up real options.

4. Picking the Wrong Agent

Not all real estate agents understand short sales. Choosing someone without experience can cost you time, money, and peace of mind.

Why it matters: A skilled agent knows how to negotiate with lenders, manage timelines, and guide you through the process. A rookie might miss key steps.

What to do instead: Look for agents who specialize in distressed properties or short sales. Ask about their experience and success rate.

5. Going Through It Alone

Short sales can be emotionally and financially draining. Trying to navigate it all without support only makes it harder.

Why it matters: You’re making big decisions under stress. Having the right tools and guidance can help you avoid mistakes and make more confident choices.

What to do instead: Lean on resources designed for people in your situation. Short Sale Advisor helps break down your options clearly so you’re not guessing your way through it.

Want to see how another homeowner avoided foreclosure? Read Mark’s real-life short sale story.

The Bottom Line

A short sale can be a smart way to avoid foreclosure and minimize long-term damage to your credit, but only if you understand the process and steer clear of these common mistakes.

If you're unsure where to start, the Short Sale Advisor from Goat Answer is a free, easy-to-use tool that gives you clear guidance based on your real situation. It's built to help you make informed decisions and move forward with confidence.

Try the Short Sale Advisor today and take the first step toward peace of mind.