Financed VS. Hard Money in a Short Sale

What is the difference between Financed and Hard Money in a Short Sale


There are common misconceptions regarding the terms, “Financed vs Hard Money” when purchasing a short sale in Massachusetts or any state.

Please keep in mind if you’re an investor of a short sale when you are putting an offer in and you know you’re financed vs hard moneygoing to get hard money what that truly means is you are financing the offer.

Please don’t put in your purchase contract that it’s a cash offer. It isn’t. You can put financed not based on appraisal, but don’t put in that it’s a cash offer.

The seller’s lender does not care if you’re financed, if you’re hard money, or if you’re cash. The seller’s lender on a short sale is looking for their bottom-line net. If their bottom-line net is going to net them more than what they would have to go through to put that property through foreclosure chances are your short sale will be approved.

The issue is hard money is actually still having to FINANCE a property. So, unless you truly have the cash sitting in an account, make sure when you put your offer in on your short sale you are letting your agent know that it’s a financed offer, with only one contingency or no contingencies.

For Realtors, Attorneys, Title companies, etc interested in our services please go to

For homeowners needing assistance with avoiding foreclosure please go to

2500 Main Street,
Tewksbury, MA 01876

Leave a Comment

Your email address will not be published. Required fields are marked *