{"id":9856,"date":"2026-08-13T13:43:38","date_gmt":"2026-08-13T18:43:38","guid":{"rendered":"https:\/\/lrgrealty.com\/lrg-blog\/?p=9856"},"modified":"2026-08-13T14:41:34","modified_gmt":"2026-08-13T19:41:34","slug":"short-sale-process-texas","status":"publish","type":"post","link":"https:\/\/lrgrealty.com\/lrg-blog\/short-sale-process-texas\/","title":{"rendered":"Short Sale Process in Texas: Step by Step"},"content":{"rendered":"<div class=\"rl-page\">\n<header class=\"rl-hero\">\n<div class=\"rl-eyebrow\">Process \u00b7 Guide<\/div>\n<\/header>\n<p>A short sale in Texas follows a structured process where the lender agrees to accept less than the remaining mortgage balance, and the seller walks away without a foreclosure on record. The process typically runs 5 to 7 major steps, from assembling a hardship package to closing with lender approval, and can stretch 90 to 120 days or longer. The catch is that the lender controls the timeline and can reject the deal, counter the offer, or demand a promissory note for the deficiency balance.<\/p>\n<div class=\"rl-quick-grid\">\n<article class=\"rl-quick-card\">\n<h3>Before You Start<\/h3>\n<ul>\n<li>Your lender will require a hardship letter, two months of bank statements, recent pay stubs, and your last two tax returns.<\/li>\n<li>You must owe more than the home&#8217;s current market value and show documented financial hardship before a lender will consider the application.<\/li>\n<li>Incomplete financial packages are the most common reason lenders reject short sale applications outright, so assemble every document before making contact.<\/li>\n<\/ul>\n<\/article>\n<article class=\"rl-quick-card\">\n<h3>What You Need Before Listing<\/h3>\n<ul>\n<li>Hire a real estate agent experienced in Texas short sales who can negotiate directly with your lender&#8217;s loss mitigation department.<\/li>\n<li>Write a hardship letter that explains the specific event that made your mortgage unaffordable, backed by supporting documentation.<\/li>\n<li>A broker price opinion before listing helps you propose an asking price the lender&#8217;s underwriter is more likely to approve.<\/li>\n<\/ul>\n<\/article>\n<article class=\"rl-quick-card\">\n<h3>Short Sale Timeline<\/h3>\n<ul>\n<li>Most sellers spend 2 to 4 weeks gathering hardship documentation and submitting the short sale package to their lender.<\/li>\n<li>Lender review and approval of the short sale application typically takes 60 to 120 days once the file is complete.<\/li>\n<li>From first listing to closing, expect the full Texas short sale process to run 3 to 6 months on average.<\/li>\n<\/ul>\n<\/article>\n<article class=\"rl-quick-card\">\n<h3>What a Short Sale Costs<\/h3>\n<ul>\n<li>Sellers usually pay nothing out of pocket at closing because the lender approves agent commissions and fees out of sale proceeds.<\/li>\n<li>The real financial exposure is the deficiency balance, the difference between what the home sells for and what you still owe.<\/li>\n<li>Negotiating a full deficiency waiver into the lender&#8217;s approval letter eliminates the largest potential cost sellers face after closing.<\/li>\n<\/ul>\n<\/article>\n<\/div>\n<div class=\"rl-atf-faqhead\"><span class=\"rl-kicker\">Asked First<\/span>Top questions before you dig in<\/div>\n<details>\n<summary>What is the short sale process in Texas step by step?<\/summary>\n<p>The seller submits a hardship letter and financial documents to their lender, the home gets listed and receives a buyer&#8217;s offer, and the lender approves or rejects the proposed sale price. Each lender&#8217;s requirements differ, but the process generally takes several months from application to closing.<\/p>\n<\/details>\n<details>\n<summary>How does the short sale process work step by step in Texas?<\/summary>\n<p>The seller submits a short sale application to their lender with financial documents, a hardship letter, and a signed purchase contract. The lender reviews the package, negotiates terms, and either approves or denies the sale. The full process typically takes several months from application to closing.<\/p>\n<\/details>\n<details>\n<summary>Who qualifies for a short sale in Texas?<\/summary>\n<p>Homeowners who owe more on their mortgage than the property&#8217;s current market value and face genuine financial hardship typically qualify. The lender must agree to accept less than the full balance owed, so sellers need to document the hardship with financial records, tax returns, and a written hardship letter as part of the application package.<\/p>\n<\/details>\n<section class=\"rl-bluf\">\n<h2 id=\"the-bottom-line-up-front\">The Bottom Line Up Front<\/h2>\n<p><strong>A Texas short sale moves through a specific sequence: hardship documentation, lender application, buyer offer, lender approval, and closing. The friction sits between steps three and four. Lender review of a short sale package can stretch for months, and incomplete documentation restarts that clock. Sellers who understand each stage before listing avoid the delays that kill deals.<\/strong><\/p>\n<p>The process starts when the seller submits a hardship letter, financial statements, tax returns, and bank statements to their lender. Each lender has different requirements for this package. Once the home is listed and a buyer submits an offer, the lender reviews the full package alongside the purchase contract. Texas has no state-specific short sale statute, so federal guidelines and individual lender policies control the timeline. The lender can approve, counter, or reject the sale. Forgiven debt may create a tax liability that sellers need to address with a professional before closing.<\/p>\n<ul>\n<li>Sellers must document financial hardship with tax returns, bank statements, and a written hardship letter.<\/li>\n<li>Most lenders require a signed purchase contract before they will review the short sale package.<\/li>\n<li>Lender review can stretch for months, and missing documents reset the entire timeline.<\/li>\n<li>Texas has no state short sale law, so each lender&#8217;s internal policy controls the process.<\/li>\n<li>Forgiven mortgage debt may trigger a federal tax liability that sellers should address before closing.<\/li>\n<\/ul>\n<\/section>\n<div class=\"rl-callout rl-callout--note\" role=\"note\">\n<p><strong>Educational Notice:<\/strong> The Levi Rodgers Group provides real estate transaction services, not legal or tax advice. The information below is for general educational purposes. Please consult a licensed Texas real estate attorney, CPA, or HUD-approved housing counselor regarding short sales, foreclosure alternatives, or the tax treatment of forgiven mortgage debt. HUD-approved housing counseling is available at no cost. Call 1-800-569-4287 or visit <a href=\"https:\/\/www.hud.gov\/counseling\" rel=\"noopener noreferrer\" target=\"_blank\">hud.gov\/counseling<\/a> to find a counselor near you.<\/p>\n<\/div>\n<section>\n<h2 id=\"what-is-a-short-sale-and-when-does-it-apply\">What is a short sale and when does it apply?<\/h2>\n<p>A short sale happens when a homeowner sells their property for less than the remaining mortgage balance, with the lender&#8217;s written approval to accept the shortfall. In Texas, <a href=\"\/lrg-blog\/2024-8-14-understanding-short-sales-a-guide-for-homebuyers-and-sellers\/\">short sales<\/a> apply when the homeowner owes more than the home is worth and faces financial hardship that makes continued payments unsustainable. The lender takes a known loss to avoid foreclosure.<\/p>\n<div class=\"bullet-section-gray\">\n<ul>\n<li><strong>Underwater mortgage:<\/strong> The home&#8217;s current market value has fallen below the outstanding loan balance, so a traditional sale at fair market price would not produce enough proceeds to pay off the debt. The seller cannot cover the difference out of pocket, which is the core condition that makes a short sale necessary instead of a standard closing.<\/li>\n<li><strong>Documented financial hardship:<\/strong> Lenders require proof of genuine hardship before they will consider approving a short sale. Qualifying situations typically include job loss, medical debt, divorce, death of a co-borrower, or a sustained income drop. The seller submits a hardship letter along with bank statements, tax returns, and pay stubs to support the claim.<\/li>\n<li><strong>Lender controls the approval:<\/strong> The mortgage servicer reviews the seller&#8217;s complete financial documentation, the listing price, and any purchase offer before deciding whether to approve the sale and release the borrower from the remaining balance. Each lender sets its own requirements for the short sale package, and the review process commonly stretches several weeks to several months.<\/li>\n<li><strong>Preferable to foreclosure for both sides:<\/strong> Foreclosure carries significant added costs for lenders, including property maintenance, legal proceedings, and eventual resale. For the seller, a short sale typically causes less credit damage than a completed foreclosure and may include a written release of the remaining balance, but only if the lender&#8217;s approval letter explicitly waives deficiency rights. That forgiveness is never automatic and requires a deficiency waiver in the closing agreement.<\/li>\n<\/ul>\n<\/div>\n<\/section>\n<section>\n<h2 id=\"texas-short-sale-process-explained-step-by-step\">Texas short sale process explained step by step<\/h2>\n<p>A Texas short sale moves through 6 stages, from assembling your hardship package to closing day. The total timeline stretches across several months because lender review and negotiation consume the bulk of the process. Each lender&#8217;s loss mitigation department sets its own pace, so sellers who submit complete documentation packages upfront tend to move through faster.<\/p>\n<table>\n<thead>\n<tr>\n<th>Step<\/th>\n<th>What Happens<\/th>\n<th>Typical Timeline<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1. Hardship documentation<\/td>\n<td>Gather pay stubs, tax returns, bank statements, and a hardship letter explaining why you can no longer make payments<\/td>\n<td>1-2 weeks<\/td>\n<\/tr>\n<tr>\n<td>2. Lender contact<\/td>\n<td>Submit the short sale application to your lender&#8217;s loss mitigation department and request authorization to sell below the payoff balance<\/td>\n<td>1-2 weeks<\/td>\n<\/tr>\n<tr>\n<td>3. List the property<\/td>\n<td>Price the home at current market value and disclose the short sale status to buyers using TREC Form 45-2 (verify current form number at trec.texas.gov)<\/td>\n<td>2-6 weeks<\/td>\n<\/tr>\n<tr>\n<td>4. Submit offer to lender<\/td>\n<td>Forward the signed purchase contract to the lender for review, as most lenders require a contract before evaluating the short sale<\/td>\n<td>1-2 weeks<\/td>\n<\/tr>\n<tr>\n<td>5. Lender review<\/td>\n<td>The lender orders a BPO or appraisal, reviews the offer against the outstanding balance, and issues approval, counteroffer, or denial<\/td>\n<td>30-90 days<\/td>\n<\/tr>\n<tr>\n<td>6. Closing<\/td>\n<td>Once the lender issues a short sale approval letter, proceed to title and close like a standard transaction<\/td>\n<td>2-4 weeks<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Step 5 is where deals stall. Lenders assign a negotiator who may request updated financials, order a second broker price opinion, or push back on the sale price before issuing the approval letter that lets you move to closing. A title company experienced in short sale closings helps keep the file moving.<\/p>\n<\/section>\n<section>\n<h2 id=\"documents-your-lender-will-require\">Documents your lender will require<\/h2>\n<p>Every lender assembles a slightly different checklist, but the core package stays consistent across Texas short sales. Your lender needs proof that you genuinely cannot pay the remaining balance and that the sale price reflects current market conditions. Gathering these documents before you contact the loss mitigation department saves weeks of back-and-forth delays.<\/p>\n<div class=\"bullet-section-blue\">\n<ul>\n<li><strong>Hardship letter:<\/strong> A written explanation of why you can no longer make mortgage payments. Job loss, medical bills, divorce, or a Military relocation all qualify. Keep it factual and specific with dates and dollar amounts rather than emotional appeals.<\/li>\n<li><strong>Financial statements:<\/strong> Recent bank statements, pay stubs, and 2 years of tax returns showing your current income against monthly obligations. The lender uses these to confirm you cannot cover the shortfall between the sale price and your loan balance.<\/li>\n<li><strong>Listing agreement and purchase offer:<\/strong> Most Texas lenders will not begin reviewing a short sale application until a signed listing agreement with a licensed agent and a legitimate purchase contract from a buyer are both in hand.<\/li>\n<li><strong>Property valuation:<\/strong> A comparative market analysis or broker price opinion establishing current fair market value. Some lenders order their own appraisal, but submitting yours upfront gives the loss mitigation team a starting reference point for negotiations.<\/li>\n<\/ul>\n<\/div>\n<\/section>\n<div class=\"rl-cta-mid\"><a class=\"rl-cta-pill\" href=\"\/lrg-blog\/connect-with-lrg\/?ref=short-sale-process-texas-step-by-step\">Get My Free Home Equity Analysis \u2192<\/a><\/div>\n<section>\n<h2 id=\"how-long-a-short-sale-takes-in-texas\">How long a short sale takes in Texas<\/h2>\n<p>Most Texas short sales close in 90 to 120 days from the date the seller submits the complete hardship package. The bulk of that time sits with the lender&#8217;s loss mitigation department reviewing financials and ordering the property appraisal. Some lenders respond in weeks; others stall for months. A second lien holder or mortgage insurer adds a separate approval layer that can stretch the process further.<\/p>\n<table>\n<thead>\n<tr>\n<th>Phase<\/th>\n<th>Typical Duration<\/th>\n<th>What Controls the Clock<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Hardship package submission<\/td>\n<td>1 to 2 weeks<\/td>\n<td>Seller&#8217;s speed gathering bank statements, tax returns, pay stubs<\/td>\n<\/tr>\n<tr>\n<td>Lender review and BPO\/appraisal<\/td>\n<td>30 to 60 days<\/td>\n<td>Lender staffing levels, whether they order a broker price opinion or full appraisal<\/td>\n<\/tr>\n<tr>\n<td>Offer negotiation<\/td>\n<td>2 to 4 weeks<\/td>\n<td>Spread between offer price and lender&#8217;s minimum net, counteroffers<\/td>\n<\/tr>\n<tr>\n<td>Second lien or MI approval<\/td>\n<td>2 to 4 weeks (if applicable)<\/td>\n<td>Whether a junior lien holder or mortgage insurer must also sign off<\/td>\n<\/tr>\n<tr>\n<td>Closing and title transfer<\/td>\n<td>2 to 3 weeks<\/td>\n<td>Title work, buyer financing timeline, deed preparation<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Buyers waiting on a short sale approval should keep backup <a href=\"https:\/\/lrgrealty.com\/lrg-blog\/options-cant-afford-sell-texas-home\/\">options<\/a> open. Lender approval letters typically carry a closing deadline of 30 days or less, so the buyer&#8217;s financing needs to be ready before that letter arrives.<\/p>\n<\/section>\n<section>\n<h2 id=\"choosing-between-a-short-sale-agent-and-a-cash-buyer\">Choosing between a short sale agent and a cash buyer<\/h2>\n<p>Sellers facing a short sale in Texas typically weigh two paths: listing with an agent who specializes in distressed properties or accepting a direct offer from a cash buyer. The right choice hinges on how much time remains before foreclosure proceedings advance, whether your lender requires the property to be listed on the open market, and how much of the remaining balance you need the lender to forgive.<\/p>\n<div class=\"bullet-section-green\">\n<ul>\n<li><strong>Agent-listed short sale:<\/strong> A short sale specialist handles lender negotiations, coordinates the broker price opinion the lender orders on the property, and works to secure deficiency waiver terms that protect you from owing money after closing. Agents experienced in distressed transactions know how to package your hardship documentation so the lender&#8217;s loss mitigation team processes the file without repeated requests for missing paperwork.<\/li>\n<li><strong>Direct cash buyer offer:<\/strong> Cash buyers skip the traditional listing period and can close in as few as 2 to 3 weeks. That speed matters when a foreclosure sale date is already scheduled, but the tradeoff is typically a lower offer price, which increases the gap your lender has to agree to absorb.<\/li>\n<li><strong>Deficiency waiver comes first:<\/strong> Whichever route you take, confirm in writing that your lender agrees to forgive the remaining loan balance after closing. Without that language in the short sale approval letter, you could still owe the difference between the sale price and the outstanding mortgage even after the property changes hands.<\/li>\n<li><strong>Check lender listing rules early:<\/strong> Some lenders require the property to be listed on the MLS for a minimum number of days before they consider approving a short sale at all. Contact your lender&#8217;s loss mitigation department before choosing a path, because discovering this requirement after you have a cash offer in hand can cost you weeks.<\/li>\n<\/ul>\n<\/div>\n<\/section>\n<section>\n<h2 id=\"common-deal-breakers-in-texas-short-sales\">Common deal breakers in Texas short sales<\/h2>\n<p>Short sales collapse more often than standard transactions because every deal requires approval from a lender under no obligation to say yes. The most common failures trace back to weak documentation, mispriced listings, buyer fatigue during the lengthy review window, and junior lien disputes that surface late. Sellers who understand these pressure points build stronger files and avoid restarts that add months to an already drawn-out process.<\/p>\n<div class=\"bullet-section-beige\">\n<ul>\n<li><strong>Incomplete hardship package:<\/strong> Lenders reject short sale applications when bank statements, tax returns, pay stubs, or the hardship letter are missing or outdated. A single missing document sends the file back to the beginning of the review queue, adding weeks to the timeline and risking buyer walkaway.<\/li>\n<li><strong>Pricing that fails the lender&#8217;s valuation:<\/strong> The lender orders a broker price opinion before approving any short sale. If the contract price does not align with that independent valuation, the lender counters or rejects the deal. Sellers who price based on what they owe rather than current comps create this mismatch.<\/li>\n<li><strong>Buyer drops out during review:<\/strong> Approval timelines stretching 90 to 120 days test buyer patience. Buyers frequently find another property, lose their rate lock, or simply give up waiting. A backup offer strategy keeps the deal alive if the first buyer walks.<\/li>\n<li><strong>Junior lien holders refuse to release:<\/strong> A second mortgage, home equity line, or HOA lien can block closing when the junior creditor rejects the small payout the primary lender offers from sale proceeds. Negotiating these releases early in the process prevents last-minute deal collapse.<\/li>\n<\/ul>\n<\/div>\n<\/section>\n<section>\n<h2 id=\"what-happens-after-the-short-sale-closes\">What happens after the short sale closes<\/h2>\n<p>Closing day ends the transaction, but several financial and legal steps follow that determine whether the short sale actually solves your problem. The most important is your deficiency waiver. Without written confirmation that the lender forgives the remaining mortgage balance, you could still owe the gap between the sale price and what you owed. Texas law allows lenders to pursue that difference through a deficiency judgment.<\/p>\n<div class=\"bullet-section-gray\">\n<ul>\n<li><strong>Deficiency release paperwork:<\/strong> Your closing documents should include the lender&#8217;s written agreement to waive the remaining balance. Keep copies with your mortgage records. If that release is missing or vague, the lender retains the legal right to collect the shortfall from you after the sale.<\/li>\n<li><strong>Credit report notation:<\/strong> A completed short sale appears on your credit history for 7 years. Your score drops at closing, but the recovery window runs shorter than what follows a foreclosure. Consistent on-time payments on other accounts accelerate the rebuild.<\/li>\n<li><strong>Potential tax on forgiven debt:<\/strong> The IRS may treat the forgiven portion of your mortgage as taxable income and issue a 1099-C for the difference. Speak with a tax professional before your next filing to find out whether federal exclusions apply to your situation.<\/li>\n<li><strong>Timeline to buy again:<\/strong> Each loan program sets its own waiting period before you qualify for a new mortgage after a short sale. The gap varies by program type, and lenders also weigh your post-sale credit recovery. Check current guidelines with a loan officer when you are ready to restart the process.<\/li>\n<\/ul>\n<\/div>\n<\/section>\n<section>\n<h2 id=\"the-bottom-line\">The Bottom Line<\/h2>\n<p>A Texas short sale is a 6-stage process that hinges on one thing: proving to your lender that accepting less than the full mortgage balance is better than the alternative. That proof lives in your hardship package. Weak documentation is the single most common reason deals collapse, so assembling a complete, accurate file before you list the property sets the pace for everything that follows.<\/p>\n<p>Expect the process to stretch 90 to 120 days from submission to closing, with most of that time consumed by lender review. Whether you list with a short sale agent or sell to a cash buyer depends on your timeline and how much of the deficiency you need the lender to release in writing. Either path requires patience, but a clean file and realistic expectations keep the deal moving toward the closing table.<\/p>\n<\/section>\n<div class=\"rl-cta-mid\"><a class=\"rl-cta-pill\" href=\"\/lrg-blog\/connect-with-lrg\/?ref=short-sale-process-texas-step-by-step\">Get My Free Home Equity Analysis \u2192<\/a><\/div>\n<div class=\"rl-faq\">\n<h2 id=\"frequently-asked-questions\">Frequently Asked Questions<\/h2>\n<section class=\"rl-faq\">\n<h2 id=\"more-questions\">More Questions<\/h2>\n<details>\n<summary>What does short sale property mean?<\/summary>\n<p>A short sale happens when a homeowner sells their property for less than the remaining mortgage balance, and the lender agrees to accept the reduced payoff. The seller owes more than the home is currently worth. The lender takes a financial loss but avoids the higher costs tied to foreclosure, including maintenance, legal fees, and resale expenses. In Texas, short sales require lender approval before the transaction can close. Buyers should understand that the seller&#8217;s lender, not the seller, has final say on whether the sale price is accepted.<\/p>\n<\/details>\n<details>\n<summary>How is a short sale different from a foreclosure?<\/summary>\n<p>In a short sale, the homeowner voluntarily sells with the lender&#8217;s permission for less than the mortgage balance. In a foreclosure, the lender takes legal action to seize the property after missed payments. Short sales give the seller more control over the process and typically result in less credit damage. Foreclosures in Texas follow a non-judicial process that can move quickly, sometimes within 60 days of default. For buyers, short sales involve longer wait times for lender approval but usually deliver a property in better condition than a foreclosed home, which may have deferred maintenance or damage.<\/p>\n<\/details>\n<details>\n<summary>What should buyers expect during a short sale purchase?<\/summary>\n<p>Buyers start by identifying a short sale listing and making an offer through their agent. The seller accepts the offer, then submits it to their lender along with the full short sale package. From there, the lender reviews the offer, orders an appraisal or broker price opinion, and decides whether to approve the sale price. Buyers should expect longer timelines than a traditional purchase and should secure financing early. Getting pre-approved before making an offer signals to the seller&#8217;s lender that the deal is likely to close. Keep backup options open, because lender rejections do happen.<\/p>\n<\/details>\n<details>\n<summary>How long does the short sale process take in Texas?<\/summary>\n<p>Timelines vary by lender, but most short sales in Texas take 90 to 120 days from accepted offer to closing. Some stretch past 6 months if the lender&#8217;s loss mitigation department is backlogged or if the loan involves multiple lien holders. Each additional lien holder adds a separate approval layer. The initial lender review, which includes appraisal ordering and file review, typically accounts for the longest delay. Buyers can shorten the process by submitting clean offers with strong pre-approval letters and minimal contingencies. The seller has limited ability to speed up lender decisions.<\/p>\n<\/details>\n<details>\n<summary>What goes into a short sale package?<\/summary>\n<p>The seller&#8217;s short sale package includes a hardship letter explaining why they can no longer make mortgage payments, 2 years of tax returns, recent pay stubs or proof of income, bank statements, a comparative market analysis from the listing agent, and the signed purchase contract. Most lenders also require a financial worksheet showing monthly expenses and debts. Each lender has slightly different documentation requirements, so sellers should confirm the full checklist with their loss mitigation department before submitting. An incomplete package is one of the most common reasons for delays in the approval process.<\/p>\n<\/details>\n<details>\n<summary>What are the risks of buying a short sale home?<\/summary>\n<p>The biggest risk is time. Lender approval can take months, and the deal can fall through if the lender rejects the offer or counters at a price the buyer cannot meet. Short sale properties are typically sold as-is, meaning the seller is unlikely to make repairs or offer concessions. Title issues can also surface, including junior liens or judgments that complicate closing. Buyers should budget for a thorough inspection and title search early in the process. There is also no guarantee the lender will forgive the full deficiency balance, which can create complications that delay closing further.<\/p>\n<\/details>\n<\/section>\n<\/div>\n<div class=\"rl-methodology\">\n<h3>How We Researched This Article<\/h3>\n<p>This guide draws on Texas Property Code, IRS publications, and publicly available housing data. All legal references cite specific code sections. Market data uses ranges and qualitative descriptions rather than point-in-time numbers that change quarterly. We do not provide legal or tax advice. Consult a licensed Texas real estate attorney for legal questions and a CPA for tax questions specific to your situation.<\/p>\n<\/div>\n<footer class=\"rl-resources\">\n<h2 id=\"resources-used\">Resources Used<\/h2>\n<div class=\"bullet-section-blue\">\n<ul>\n<li><a href=\"https:\/\/www.nar.realtor\/legal\/risk-management\/the-short-sale-workflow\" rel=\"noopener noreferrer\" target=\"_blank\">NAR.realtor &#8211; The Short Sale Workflow &#8211; National Association of REALTORS\u00ae<\/a><\/li>\n<li><a href=\"https:\/\/www.trec.texas.gov\/forms\/short-sale-addendum-0\" rel=\"noopener noreferrer\" target=\"_blank\">Trec.texas.gov &#8211; Short Sale Addendum &#8211; TREC &#8211; Texas.gov<\/a><\/li>\n<li><a href=\"https:\/\/www.har.com\/blog_132532_a-complete-guide-to-the-short-sale-process-step-by-step\" rel=\"noopener noreferrer\" target=\"_blank\">Har.com &#8211; A Complete Guide to the Short Sale Process: Step-by-Step &#8211; HAR.com<\/a><\/li>\n<li><a href=\"https:\/\/www.texasnationaltitle.com\/short-sale-transactions\/short-sale-transactions\/\" rel=\"noopener noreferrer\" target=\"_blank\">Texasnationaltitle.com &#8211; Short Sale Transactions | Texas National Title<\/a><\/li>\n<li><a href=\"https:\/\/silblawfirm.com\/real-estate-law\/how-to-work through-a-short-sale-and-avoid-foreclosure\/\" rel=\"noopener noreferrer\" target=\"_blank\">Silblawfirm.com &#8211; Understanding Short Sales and Avoiding Foreclosure<\/a><\/li>\n<li><a href=\"https:\/\/www.kapre.com\/resources\/real-estate\/short-sales?srsltid=AfmBOorj3Bu3K7i-O011dWH7WVpMrke8fZ8UkksuyD0lVbFCoJPdlz5Z\" rel=\"noopener noreferrer\" target=\"_blank\">Kapre.com &#8211; What Is a Short Sale in Real Estate and How Do They Work?<\/a><\/li>\n<li><a href=\"https:\/\/www.cainlawyers.com\/blog\/normal-texas-real-estate-closings-vs-short-sale-closings\" rel=\"noopener noreferrer\" target=\"_blank\">Cainlawyers.com &#8211; Normal Texas Real Estate Closings vs. Short Sale Closings<\/a><\/li>\n<\/ul>\n<\/div>\n<\/footer>\n<section class=\"rl-callout rl-disclosure\">\n<h3>Legal &amp; Tax Disclaimer<\/h3>\n<p>The information provided in this article is for general educational and informational purposes only and does not constitute formal legal, tax, or financial advice. The Levi Rodgers Group and its agents are licensed real estate professionals, not licensed attorneys or certified public accountants.<\/p>\n<p>Short sales, foreclosure alternatives, deficiency judgments, loan modifications, and the federal tax treatment of forgiven mortgage debt are complex, subject to change, and dependent on individual financial circumstances. Forgiven debt may create taxable income; other exclusions (including insolvency and bankruptcy) may apply.<\/p>\n<p>Reading this content does not establish an attorney-client or advisory relationship. You should not act or refrain from acting based on any content included on this site without seeking independent professional counsel. Always consult with a qualified Texas real estate attorney, CPA, or HUD-approved housing counselor regarding your specific situation before making decisions about your mortgage, home sale, or debt obligations.<\/p>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A short sale in Texas requires lender approval to sell for less than the mortgage balance. The process typically takes 60 to 120 days from listing to close. This guide covers every step, the documents required, and common deal killers.<\/p>\n","protected":false},"author":1,"featured_media":9857,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20,76],"tags":[],"class_list":["post-9856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-buying","category-short-sales"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Short Sale Process in Texas: Step by Step - LRG Realty Blog<\/title>\n<meta name=\"description\" content=\"How the short sale process works in Texas, step by step. 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