Will I have to make a cash contribution in a Florida short sale?

Most of the time short sales end up costing the seller nothing. Periodically though, the lender may ask the seller to contribute to the short sale in either the form of a cash contribution at closing or an unsecured promissory note payable after closing.

When are lenders likely to ask for cash contributions?

Certain instances can trigger the lender to ask sellers to contribute cash or a promissory note in order to get their short sale approved. Common triggers would be:

The property is an investment property rather than an owner occupied property.
The seller is current on mortgage payments.
The seller has income in excess of his/her monthly payments.
The seller has significant liquid assets (usually over $10,000 of non-retirement assets).

FREE CASE EVALUATION

What options do I have if my lender requests a cash contribution?

You may in fact agree to just pay the cash or sign up for the note to move things along, but there are a few ways that your Florida Short Sale Realtor can approach this request that are often successful in minimizing or eliminating the request altogether:

Just say no - but write a letter to the investor, describing your hardship and inability to pay the note or cash. You would be surprised how often this simply strategy will completely eliminate the request altogether. This is usually our first recommended line of defense against a cash contribution or promissory note request.
Counter the request with a lesser amount. ALMOST EVERYTHING IS NEGOTIABLE. For example, if asked for $10,000 offer $500 and see what happens. More often than not, the lender will accept, or at least come down. Be prepared for another counter.
Counter the request with an alternate payment method. If cash is tight, you may offer a note instead cash, but be prepared that notes are less favorable to investors than cash and therefore you will likely end up paying more this way. Cash is king. You may significantly reduce the face value of the contribution by offering a lesser cash amount if asked for a note.

Once in a blue moon, a lender will not budge at all on a contribution. In these cases it is best to consider your settlement options. All in all, requests for contributions are generally pennies on the dollar versus the amount of the whole debt and are sometimes your best option going forward, especially in a deficiency state like Florida.

Your best defense when the lender asks for a cash contribution is the guidance from your experienced Florida Short Sale Realtor. Choose wisely!

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I was about to give up and just turn my back on my home and walk away. However, I found Minna and she was a lifesaver! Other realtors tried to help me but made the situation worse and wasted my time. If you are in the unfortunate place of having to short sale your home, then you know it can be embarrassing and difficult, especially if you don't have real estate experience. Minna knew exactly what to do, and was very professional, knowledgeable, and, kind. Minna was on my side and handled all the challenges we faced with selling a house that at times seemed like it didn't want to be sold! I appreciate Minna and know that you will love her.

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Last Updated on July 24, 2026 by Minna Reid

cash contribution, promissory note

July 24, 2026

Do I Have to Bring Money to Closing in a Florida Short Sale?