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Short Sale Net Recovery Calculator

Short sales sell below loan balance with lender approval. This calculator computes lender net recovery.

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Net recovery

$319,300

Deficiency

$90,700

Recovery rate

77.9%

How the math works

Net = sale price × (1 − comm) − closing − arrears. Deficiency = loan − net.

Compare net short-sale recovery to projected foreclosure recovery. Short sales execute in 3-6 months vs 9-18 for foreclosure. Time value alone often tips the scales.

How to Use

  1. Enter sale price.
  2. Enter commission.
  3. Enter closing costs.
  4. Enter lender approval amount.
  5. Read net recovery.

Frequently Asked Questions

When short sale?

Borrower can't pay, property worth less than loan. Lender approves shortfall to avoid foreclosure. Faster than foreclosure in many states; cheaper too.

Lender net?

Sale price minus commission (5-6%) minus closing (1-2%) minus any HOA or tax arrears. Net recovery vs foreclosure: often similar or slightly worse, but much faster.

Deficiency?

Lender can pursue deficiency judgment in most states. Most waive for borrower cooperation. Document in writing for borrower's benefit.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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