Short Sales Are Rising in Georgia:
What Homeowners Need to Know in 2026

While short sales remain a small portion of the overall market, a new report from Realtor.com shows they are on the rise nationally. Short-sale transactions were up 4% from 2023 to 2024, nearly 10% from 2024 to 2025, and about 16% year-over-year in the first quarter of 2026. For Georgia homeowners facing financial difficulty, this trend signals an important shift in how distressed properties are being resolved.

The full Realtor.com report offers a detailed look at the data. But what does this mean for you? Understanding the difference between a short sale and a foreclosure, and knowing which option serves your long-term financial health, is critical.

A short sale occurs when a homeowner sells their property for less than the remaining mortgage balance, with the lender's approval. This can be a better alternative to foreclosure for both the seller and the lender. The lender agrees to accept less than the full amount owed, and the homeowner avoids the more damaging consequences of a foreclosure proceeding.

Short sales require documentation, patience, and professional guidance. The lender must agree that a short sale is preferable to foreclosure, and the process involves submitting a detailed financial package that proves hardship.

Properties are fetching roughly 9% more of their estimated value as a short sale than as a foreclosure, according to Realtor.com. In addition, owners who go through foreclosure face a longer waiting period before they can qualify for a mortgage in the future. A foreclosure can remain on your credit report for seven years, making it harder to buy another home, secure a car loan, or even rent an apartment.

Despite these advantages, short sales still trail foreclosures by more than two to one. Why? Because once foreclosure has been initiated, owners can stay in the home for an average of 592 days. A short sale, on the other hand, requires homeowners to act before the bank forces their hand, which can feel overwhelming without the right guidance.

Many homeowners wait too long to seek help. The earlier you explore your options, the more control you retain over the outcome. The National Association of REALTORS consumer guide to short sales is an excellent starting point for understanding the process.

If you are struggling to make your mortgage payments, you have options. Forbearance, deferment, loan modification, and reinstatement are all possible routes depending on your situation. But if those options are not enough and you owe more than your home is worth, a short sale may be the best path forward.

For homeowners considering a short sale, notifying your lender and engaging with a real estate professional who is a REALTOR are important early steps. A REALTOR with specialized training in distressed properties can help you navigate the process, communicate with your lender, and work toward the best possible outcome.

Lisa Harris holds the Certified Distressed Property Expert (CDPE) designation, one of the first certifications she earned when she became licensed in 2007. With nearly two decades of experience helping homeowners in Northeast Georgia, Lisa has the knowledge and training to guide you through a short sale or help you understand all of your options.

Your ability to successfully close on a short sale depends on keeping open communication with your REALTOR and your lender. If you or someone you know is facing financial difficulty and wondering what to do about their mortgage, reach out for a confidential conversation. There is no judgment here, only expert guidance.