It’s been over a decade since short sales were a regular part of the real estate landscape. In 2010–2012, they were everywhere—a byproduct of the housing crash and the widespread negative equity that followed. Fast forward to 2025, and we’re in a very different environment. Short sales are rare. But not extinct. In fact, we’re currently handling two of them. What is a short sale? In it’s simplest form, the sale of the home will net less money than the mortgage holder(s) is owed- the funds will be short of making the bank whole on their loan.
That raises the question: why now? And why does it matter?
What’s Changed Since the Housing Crash?
The main difference between today and 2010 isn’t that people aren’t struggling—it’s that most homeowners have options.
- 83% of mortgage holders have an interest rate below 6%.
That’s a huge incentive to hang on to the home if possible. - 68% of homeowners have paid off their mortgage or have at least 50% equity.
That’s a financial buffer that simply didn’t exist in 2010.
Even if someone is behind on payments, today’s homeowners are far more likely to have equity—and that means they can sell traditionally, pay off the mortgage, and move on without involving the bank.
So Why Do Short Sales Still Happen?
Life happens. Divorce, job loss, medical bills, or relocating in a down market can all lead to a short sale—even in an equity-rich environment. If a homeowner bought recently and values dipped, or they pulled out equity and now need to sell under pressure, the numbers may not pencil out.
That’s the situation with the two we’re working on right now. These aren’t distressed properties—they’re simply the product of complex personal and financial circumstances.
How Do Short Sales Work?
For those unfamiliar—or those who’ve blissfully forgotten—short sales require the lender’s approval to sell the property for less than what is owed on the mortgage. It’s a longer, paperwork-heavy process compared to a traditional sale. But it can be a win-win for both buyer and seller when done right.
We created some resources back in the thick of the short sale era that are still incredibly helpful:
What Buyers and Sellers Should Know in 2025
For Sellers:
If you’re in a tight spot and don’t think you can sell traditionally, a short sale might be worth exploring before defaulting on payments. You may still have time to work with your lender and protect your credit.
For Buyers:
Short sales aren’t always the deal they appear to be, but if you’re patient and flexible on timing, you could land a great home—just be prepared for a longer closing window and less certainty along the way.
Final Thought
Short sales are no longer a market trend—they’re a niche solution. But they still have their place. If you’re unsure where you stand, or know someone who might be facing difficult decisions around their mortgage, we’re always happy to talk through options.
The Oregon State Bar goes deeper into Foreclosure Law in Oregon.