Short Sale question(Newbie)

Hi, wondering what the average haircut lenders are accepting on 192k payoffs and 101k payoffs? Do you believe 25k would be an acceptable deduction? Also, what type of resale restrictions are the majority of lenders accepting short sales imposing nowadays?

I’m in Los Angeles, CA btw.


PS I know theres not much detail outlined but if there’s any piece of advice you can give me, please share.


Most lenders may allow a little off the top or a trim around the edges, but unless the property has been on the market for 75 to 100 days your not likely to get a lender to agree to a 25% discount, but 13% off of the $192k note might be a good starting spot.

Of course if this is a day or two before the auction, then you might get by with 25% off. Your just going to need to get a feel for your market and what’s within reason, most short sales today are being sold to owner occupied buyers.

Good luck,


When negotiating with your lender to sell short, it’s very helpful to know what the fair market value is on the home. In Florida, where there are probably more shorts per capita than most places, sales aren’t discounted much or any below FMV. Remember also that many of these loans are insured against foreclosure. The lender is comparing the short sale against the potential loss through a foreclosure. Finally, be wary of potential income tax pitfall from selling short.
Good luck!!

Were you able to get the bank’s approval on the short sale you were working?