Closing Story: 16 Sand River Court, Sacramento — What You Should Know About Short Sales
- kwellsgroup
- 2 hours ago
- 3 min read
Have you ever wondered what really happens when a home sale depends on the bank’s approval?
We just closed on 16 Sand River Court in Sacramento’s Pocket neighborhood — and this one came with a unique twist.
It was a short sale.
If you’re not familiar with what that means, you’re not alone. Short sales aren’t as common as they were during the 2008–2012 era, so many buyers today have never experienced one.
Let’s break it down.
What Is a Short Sale?
A short sale happens when a homeowner owes more on their mortgage than the home is currently worth.
Instead of going through foreclosure, the seller asks their lender for permission to sell the property for less than what’s owed. The bank then has to review the offer, confirm the market value, and decide whether they’re willing to accept a payoff that’s “short” of the total loan balance.
That’s where the name comes from — the bank is accepting a short payoff.
In this case, the previous owner had a reverse mortgage, and the balance exceeded the home’s market value. So even though we made an offer in November, the bank had to approve the transaction before anything could officially move forward.
What Makes Short Sales Different?
In a traditional sale:
Buyer and seller negotiate.
They agree on price and terms.
Escrow begins immediately.
In a short sale:
Buyer and seller agree on price.
The seller submits that offer to the bank.
Then everyone waits for the bank’s approval.
And that waiting period can last weeks… or months.
From the buyer’s perspective, there’s very little control during this stage. Most of the work happens behind the scenes between the listing agent and the lender.
The bank will usually:
Order their own appraisal or valuation.
Review the seller’s financial hardship.
Decide whether the offer reflects true market value.
Issue formal approval (or denial).
Until that approval is issued, the deal is essentially on hold.
The Risk Buyers Need to Understand
Short sales come with two major risks:
There’s no guarantee of approval. You could wait months and the bank could still say no.
Once approved, the terms are typically final. After the bank signs off, you generally cannot renegotiate. The approval amount is already locked in. If inspection issues come up, the bank is unlikely to adjust further.
It becomes more of a “take it as-is or walk away” situation.
That’s important for buyers to understand before entering a short sale contract.
How This One Played Out
We began working together in September and got into contract in November.
Then we waited.
In early January, we finally received notice that the short sale was approved. Even though our offer had been accepted months earlier, escrow did not officially begin until that approval notice was delivered.
The moment we got approval, we moved fast.
Because we had been waiting for so long, we were fully prepared:
Inspections scheduled immediately
Appraisal ordered right away
Loan already organized and ready to go
The home was vacant, which helped streamline everything. No new issues came up beyond what we had already identified during the earlier home inspection.
We ended up closing two weeks ahead of schedule.
The Opportunity in Short Sales
Here’s the upside.
The short sale label often scares buyers away. Many don’t want to deal with the uncertainty or timeline.
But when you have a patient buyer who understands the risks and is financially prepared, there can be opportunity.
In this case, my clients secured a very strong purchase price and gained instant equity.
They plan to complete cosmetic upgrades to further increase value and personalize the home.
The Big Lesson
Short sales aren’t for everyone.
They require:
Patience
Strong financing
Emotional discipline
Flexibility
You may wait months and never get approval.
But if approval does come — and you’re ready — you can create real opportunity.
16 Sand River Court is a perfect example of preparation meeting patience.
And sometimes, the buyers who are willing to wait are the ones who win.
Thinking about buying or selling in today’s market — or wondering if a short sale could be an opportunity for you?
Every situation is different and having the right strategy matters. If you’re considering a move in Sacramento, Roseville, or surrounding Placer County communities, let’s talk through your options and build a plan that puts you in the strongest position possible.
Kyle Wells, Realtor®
KWells Group Real Estate
Brokered by eXp Realty of California, Inc.
915 Highland Pointe Dr STE 250
Roseville, CA 95678
📞 916-778-8659
DRE #02145088
Serving Roseville, Rocklin, Loomis & surrounding Placer County communities
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