A short sale is a lender-approved sale for less than you owe, closed before the Public Trustee auction. Below is the practical sequence Peter uses — and what the listing broker actually does with the servicer. Approval is never automatic.
Timing is everything. After an NED, the Public Trustee sale date is the outer limit. A complete package must reach the servicer with enough runway left to review and approve it.
Call/text (720) 299-7373 or email [email protected]. We review your NED date, sale date, loan type, hardship, junior liens if known, and whether a short sale is realistic — at no cost for the consultation.
Hardship letter, financials, tax returns, payoff/authorization forms, and listing documents the servicer requires. Incomplete files stall; complete ones move. Your responsiveness is part of beating the auction clock.
The property is marketed on the open market like a normal listing — not as a Public Trustee auction. Neighbors see a for-sale listing rather than weeks of legal notices tied to an auction (if a short sale is pursued in time).
When a viable offer arrives, Peter submits it with the short-sale package to the servicer’s loss-mitigation / short-sale desk, responds to document requests, and follows status. The broker advocates and coordinates — the lender decides.
Do not close until you understand deficiency language, any relocation contribution, closing conditions, and deadlines. A deficiency waiver exists only if it is in writing. Ask a Colorado attorney if you need legal interpretation.
Title, the buyer, junior parties (when required), and the lender must all clear before the Public Trustee sale. If the clock is too short, auction risk rises — which is why early contact matters.
Homeowners often ask what “working the short sale with the bank” means day to day. Here is the brokerage role — and its limits.
Obtain authorization to speak with the servicer; assemble a complete package; price and market the home; screen offers; submit contracts and addenda the short-sale desk requires; push for status updates; coordinate appraisals/BPOs when ordered; align title and closing once an approval issues.
Approval, the sale price the lender will accept, a deficiency waiver, a postponement of the Public Trustee sale, or a specific move-out date before the lender agrees in writing. Investor rules, mortgage insurance, and junior liens can block or delay a file.
A short sale is one path. Depending on your facts, cure, deed-in-lieu, bankruptcy, loan modification discussions with the servicer, or riding the foreclosure to auction may also be on the table. Peter discusses the short-sale path; a Colorado attorney advises on legal options.
If you can bring the loan current under Public Trustee and loan rules (including Notice of Intent to Cure timing), the foreclosure path for that file may stop. Confirm exact amounts and deadlines with the servicer and Public Trustee.
You transfer the property to the lender if they accept. It can avoid an auction, but the lender must agree, junior liens often must be cleared, and deficiency/credit terms are whatever is written — not assumed.
Open-market sale for less than owed, with written lender approval, closed before auction. More moving parts than a deed-in-lieu, and still uncertain — but often more control over marketing and, if approved, contract-based possession terms.
The house sells at auction on someone else’s timeline. The NED and foreclosure history remain in the public record. Credit impact is typically severe and long-lasting. Colorado is a recourse state — the lender may sue for a deficiency. Forgiven or unpaid balances can raise tax questions (ask a CPA).
The home sells on the open market before auction. Move-out is often negotiated in the contract after approval. Credit damage is still real; waiting periods for a future mortgage are often shorter than after foreclosure, but you must verify current guidelines with a lender. Deficiency is waived only if the approval letter says so.
Peter Janisch — Broker/Owner, Professional Brokers Group. 20+ years helping Colorado homeowners with short sales under foreclosure pressure.
Important: Not a law firm. Licensed Colorado real estate broker. Short sale not guaranteed; results vary. Deficiency and approval terms are controlled by written lender documents. General information only — not legal, tax, or credit advice. See C.R.S. Title 38, Article 38.
