Florida real estate agents in the U.S. call for reshaping the short sale process to reduce lender losses and improve property disposal efficiency

Florida Real Estate Broker Calls for Short Sale Process Overhaul to Reduce Lender Losses and Improve Property Disposition Efficiency

Hollywood, Florida, May 22, 2026 — Edward Goldfarb, a U.S. real estate broker specializing in distressed properties and foreclosure prevention, recently publicly proposed reforms to improve the efficiency of short sale processing, noting that current delays in approvals, expired documents, repeated resubmissions, and poor communication are increasing the combined costs for lenders, homeowners, and brokers.

Goldfarb said that short sales were originally designed as a disposition method to help homeowners sell a property with lender approval when the amount owed exceeds the property’s value, but in practice, the approval process often stretches to 6 to 12 months, and repeated buyer cancellations can force the process to restart multiple times.

Cost Pressures Caused by Delays in the Short Sale Process

According to Goldfarb, prolonged delays in the short sale process can lead to multiple consequences:

• Buyers may walk away during the waiting period;
• Real estate brokers and related parties must repeatedly invest time in marketing, negotiation, and coordination;
• Carrying costs continue to accumulate, including taxes, insurance, and legal expenses;
• If the short sale fails and proceeds to foreclosure, lenders typically incur additional disposition costs.

Goldfarb pointed out that a successfully completed short sale usually produces better recovery results than foreclosure, but the current system’s inefficiency is instead weakening the willingness of all parties to move short sales forward.

Proposed Reform Directions

Goldfarb’s recommendations include:

• If a short sale is denied, allow the original listing broker to continue managing the property as an REO asset;
• If the property ultimately goes into foreclosure, give priority to buyers who have been waiting for short sale approval;
• Provide reasonable compensation or incentives to brokers who successfully complete short sales;
• Treat brokers as partners in the loss mitigation process;
• Require lenders to provide status updates every two months;
• Keep short sale approval times within 45 days;
• Remove Buyer Specific restrictions in non-arm’s length short sales.

Goldfarb said a faster and more transparent process is expected to improve asset recovery, reduce foreclosure numbers, and ease pressure on homeowners.

Industry Background

Short sales and foreclosure dispositions have long been important issues in U.S. housing finance and distressed property management. For lenders, process efficiency affects not only recovery results but also carrying costs, asset maintenance, and subsequent sale performance. For brokers and buyers, approval timelines and communication mechanisms determine whether a transaction can be completed smoothly.

Against this backdrop, discussions around short sale standardization, timeline management, and coordination among all parties continue to draw attention from real estate professionals and loan servicing institutions.

About Edward GoldfarbEdward Goldfarb is a licensed real estate agent with United Realty Group in Florida, USA, specializing in distressed properties and foreclosure prevention, and holds multiple certifications related to distressed real estate. He is frequently interviewed and comments on issues related to loss mitigation and efficient property disposition.

Contact Information

For interviews or more information, please contact:

Edward Goldfarb Phone: 954.605.8427 Email: EdGoldfarb@Realtor.com

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