{"ok":true,"canonical_url":"https://dealroom.so/glossary/short-sale","api_url":"https://dealroom.so/api/public/glossary/short-sale","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"short-sale","term":"Short sale","group":"Doing the deal","definition":"The sale of a property for less than the amount owed on its mortgage, with the lender's explicit permission. A past short sale is a negative item on your credit history, signaling prior financial distress.","what_it_means":"While generally less damaging than a foreclosure, a short sale still indicates past financial difficulty and will be noted on your credit report. Be prepared to clearly explain the circumstances surrounding the short sale to your lender and demonstrate how your financial stability has improved since that event. Transparency is key.","url":"https://dealroom.so/glossary/short-sale","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"personal-foreclosure","term":"Personal foreclosure","url":"https://dealroom.so/glossary/personal-foreclosure"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"derogatory-mark","term":"Derogatory mark","url":"https://dealroom.so/glossary/derogatory-mark"},{"slug":"mitigating-factors","term":"Mitigating factors","url":"https://dealroom.so/glossary/mitigating-factors"}],"related_questions":[{"question":"How does a recent personal foreclosure or short sale on my home affect SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/how-does-a-recent-personal-foreclosure-or-short-sale-on-my-home-affect-sba-7-a-loan-approv"},{"question":"How does the SBA handle a short-term deferral of principal payments at the start?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-handle-a-short-term-deferral-of-principal-payments-at-the-start"},{"question":"Can I use an SBA 7(a) loan to cover short-term operating expenses for my business?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-cover-short-term-operating-expenses-for-my-business"},{"question":"Can a short-term personal loan from a relative, repaid before closing, count as my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-short-term-personal-loan-from-a-relative-repaid-before-closing-count-as-my-equity-in"},{"question":"What happens if the business's current lease agreement for its premises is short-term or expiring soon?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-business-s-current-lease-agreement-for-its-premises-is-short-term-or-e"},{"question":"What specific lender actions or omissions can lead to a repair of the SBA guaranty, short of a full denial?","url":"https://dealroom.so/for-lenders/questions/what-specific-lender-actions-or-omissions-can-lead-to-a-repair-of-the-sba-guaranty-short-o"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Short sale","url":"https://dealroom.so/glossary/short-sale","source_type":"DealRoom Data"}}