Considering a short sale but have a jumbo loan? Get the facts!
If you’re in Florida and you have a jumbo loan (a large loan that exceeds the standard “conforming” mortgage limits) and your home is now worth less than what you owe, you may be looking at a short sale as one of your options.
What is a jumbo loan?
A “jumbo” mortgage refers to a loan size that goes above the conforming limits set by agencies like Fannie Mae and Freddie Mac. These loans are often used for higher-end homes or in areas with elevated home values. In Florida’s more expensive markets (think coastal communities, luxury condominiums, or premier neighborhoods), jumbo loans are quite common.
Considering a short sale with your jumbo mortgage? Here are key differences.
- With conforming loans, there are standardized guidelines lenders follow for short sales. With jumbo loans, the rules are far less predictable because the lender (or investor) often simply sets their own terms.
- Conditions of short sale approval including requests for cash contributions or promissory notes are more likely, and there is no guarantee for waivers of deficiency balances in advance. When entering into a short sale with a jumbo mortgage (or any portfolio loan for that matter) it is absolutely critical to have a highly experienced short sale specialist handling the sale to ease negotiations and assure the most desirable terms of approval possible.
- Jumbo loan short sale approval timelines are generally faster than conforming loan short sales. Because these are almost always portfolio notes (the lender actually owns the loan) there is an improved timeline for approval as fewer entities are involved. Loss mitigation turnaround time and responsiveness is generally an improvement over other short sales.
What this means for you: While we are always able to guide you and give you the most likely outcome of your situation during our first consultation, the terms of approval are not always highly predictable in advance in a jumbo short sale and may likely need to be negotiated, and re-negotiated throughout the short sale process.
Short sales (especially with jumbo loans) carry added risk and complexity. For the best odds of success, you'll want a real estate professional who:
- Understands the local market dynamics.
- Has plenty of short sale experience, including negotiating with lenders on jumbo/portfolio loans.
- Knows how to negotiate lender requests for cash contributions or seller promissory notes.
You Don’t Have to Navigate This Alone!
If your Florida home is worth less than your jumbo loan balance, we can help! We've guided hundreds of homeowners to approved short sales since 2008. Let’s explore your situation together and find the best path forward; one that protects your peace of mind and your financial future.
Minna, My wife and I would like to sincerely thank you for making an impossible situation possible. Your level of expertise is uncommon in any line of business. You truly are an expert in your field. Our recent home sale was the 4th real estate transaction in the last 6 years and by far the most demanding. Here is what made you stand out and above everyone else we transacted business with.You gave us a dose of reality and removed emotion from the transaction. As I walked through the details of our home and detailed description of the numerous upgrades you simply grinned and moved on to the next room. Bottom line the potential buyers do not care how much money you spent on upgrades as they are looking for the best deal in this market so price it properly. Your level of communication is exceptional. I expected a return call or email the same day when I had questions. You always returned a message within minutes and always with an answer, more importantly the right answer. A big thank you for keeping in touch and actually negotiating our deal while you were on vacation. Could I ask for anything more? Competence and Confidence. I knew I was in good hands when you explained how you planned to sell our house and sell it quickly. I had a list of questions, none of which I had to ask after your proposed plan of action. You gave me a clear and detailed explanation of what to expect from our lender and in hindsight you were spot on. You are not a sales person, you are a results driven professional. Our prior realtor ( who had our listing for 3 years) was a “yes” person with lofty expectations. He overpromised and under delivered. You were hired to sell our home for the best price in short time frame. You sold our home in 16 days, closed in 45 days from list date, with a cash offer on a jumbo transaction. Not to mention in the midst of the most difficult real estate market our generation experienced. We cannot thank you enough for your flawless execution of our request to sell our home. You absolutely exceeded our expectations. I work with hundreds of high net worth clients and without hesitation would recommend your services to any of my clients, friends and family. Cheers to you and your team!
B.P.
Last Updated on October 20, 2025 by Minna Reid
