A short sale in real estate means selling your home for less than you owe on your mortgage — with your lender's approval. If you are six months behind on your mortgage, you are probably scared. The calls from the lender are not stopping. You may have already received a Notice of Default.
Being behind on payments does not disqualify you from a short sale. It helps prove your hardship to the lender.
But the clock is running. The further into the foreclosure process you get, the fewer options you have. Here is exactly where you stand.
Being Behind Does Not Disqualify You — It Helps Your Case
Lenders do not approve short sales for people who are current on their mortgage and just want out. They approve them for people in real hardship.
Six months of missed payments is clear proof of hardship. It tells the lender: this person cannot afford this mortgage. That is exactly the story you need to tell.
You will still need to submit a hardship letter. It should explain your situation — job loss, medical bills, or reduced income. But the missed payments back up your case in a way that words alone cannot.
What Lenders Actually Look For
Lenders want to see three things before they approve a short sale: hardship, insolvency, and a real offer from a buyer.
Hardship means something changed that made the mortgage too hard to pay. Insolvency means you do not have the money to make up the difference.
Six months of missed payments checks the first two boxes. The third one — finding a buyer — is what your short sale agent handles. That is the part you do not have to figure out alone.
Hardship
A real reason you can no longer afford the mortgage — job loss, illness, divorce, rate change, or reduced income.
Insolvency
You do not have savings or other income to cover the gap between what you owe and what the home will sell for.
A buyer
A real offer from a qualified buyer at or near fair market value. Your agent markets the home and brings this to the table.
Where Does 6 Months Behind Put You on the Foreclosure Timeline?
In California, foreclosure follows a set process. Knowing where you are tells you how much time you have.
After 90 missed days, the lender can file a Notice of Default. This starts the foreclosure clock. You then have 90 more days before the next notice.
Once the Notice of Trustee Sale is filed, you have at least 21 days before the home can be sold at auction. At that point, your options narrow.
1-90 days behind
Pre-default
Lender is calling. No formal action yet. Most time to act.
90+ days behind
Notice of Default filed
The foreclosure clock starts. You have 90 days until the Notice of Trustee Sale.
After Notice of Trustee Sale
Sale scheduled
At least 21 days to auction. Short sale still possible but urgent.
Auction date
Foreclosure complete
Home sold. Short sale no longer an option.
If you have already received a Notice of Default, you may have less time than you think. The 90-day window moves quickly. Start the short sale process now — not next week.
Six months behind and not sure what to do?
Schedule a free 15-minute call with a Short Sale Specialist. You will get a straight answer about where you stand and what your options are. No pressure. No obligation.
Can You Still Stop Foreclosure at This Stage?
Yes — but only if you act now. A short sale can stop foreclosure at almost any point, right up until the home is sold at auction.
Once you send a package to the lender, most lenders will pause foreclosure. This is common. It is not guaranteed.
The key is getting started. Every week you wait is a week closer to the auction date. And once the home sells at auction, there is nothing left to do.
What Happens to the Missed Payments?
This is one of the most common questions. You owe six months of back payments on top of the mortgage balance. What happens to all of that?
In a short sale, the lender accepts the sale money as full payment. The missed payments and late fees are all part of what the lender forgives. You do not have to pay them separately.
In California, most first mortgages on a main home are protected by law. The lender cannot come after you for the rest after the short sale closes.
Second mortgages and home equity lines are handled one at a time. A specialist will work through each.
Short Sale vs. Foreclosure: How Does It Affect Your Credit?
Both a short sale and a foreclosure will hurt your credit. There is no way around that. But they are not equal.
A short sale does less damage and clears from your credit report faster. That matters when you are ready to buy again or apply for a loan.
Here is how the two compare:
| Factor | Short Sale | Foreclosure |
|---|---|---|
| Credit score drop | Varies by situation | Typically more severe |
| Stays on credit report | 4 years | 7 years |
| Wait to buy again (FHA) | 3 years | 3-7 years |
| Deficiency judgment risk (CA) | Usually waived | Possible |
| Public record | Less visible | Court record, very public |
What to Do Right Now — 3 Steps to Take This Week
If you are six months behind, you do not have time to wait and see what happens. Here are the three things to do this week.
Find out where you are in the foreclosure process
Check your mail and email for a Notice of Default. If you have one, note the date it was recorded. That tells you exactly how much time you have before the lender can schedule an auction.
Talk to a short sale specialist — not just any agent
A short sale is not a regular home sale. You need someone who has done this before, knows how to work with lenders, and can move fast. Ask how many short sales they have closed in the last 12 months.
Do not ignore the lender
Avoiding calls does not pause the foreclosure clock. Have your agent respond to the lender. This can buy you more time.
Helping Bay Area Homeowners Who Are Behind on Their Mortgage
Bay Area homeowners get help every week. Help is here across the Bay Area. Call today for honest answers about your options.
Official Government Resource
The Consumer Financial Protection Bureau offers free, unbiased guidance for homeowners facing mortgage difficulty.
CFPB Homeowner Resources ↗Frequently Asked Questions
This is general information only. It is not legal or tax advice. Talk to an attorney first.¹
