Aug 16, 2026 · 17 min
Short sales rise as distressed homeowners weigh costly options
The Surge in Short Sales
The episode explains how homeowners can respond to mounting payment pressure without mistaking today’s selective distress for a repeat of 2008.
- 1Foreclosure filings and homeowner distress are increasing in some markets, but current conditions do not simply replicate the 2008 crisis.
- 2Homeowners should calculate true net equity before comparing conventional sales, loan modifications, forbearance, deeds in lieu, and short sales.
- 3Early contact with mortgage servicers and qualified professionals can preserve options, clarify deadlines, and support a more orderly resolution.
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Nishad Khan draws the practical line between temporary payment trouble and permanent hardship when evaluating whether a short sale makes sense.
The brief
Foreclosure filings and short-sale activity are rising in some markets, but Nishad Khan says income interruptions and higher ownership costs—not a wholesale return to 2008—are driving the pressure.
Khan argues that homeowners should first calculate true net equity, then compare a conventional sale with loan modification, forbearance, deed in lieu, or short sale.
The key dividing line is permanence: temporary hardship may call for payment relief, while a short sale can fit when the home cannot cover its obligations.
A deed in lieu still requires liens and title problems to be resolved, and foreclosure timelines vary by state, making early professional guidance especially important.
The episode’s practical advice is direct: contact the servicer’s loss mitigation department, document every deadline, get terms in writing, and pursue every available option.
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