Do You Owe Money After Short Sale in Tennessee? Relief for Nashville Homeowners in Distress

Worried "do you owe money after short sale Tennessee" for your home in Nashville, Nolensville, Brentwood, Clarksville, Murfreesboro, Dickson, Franklin, or Columbia? The fear is real—but hope is too.

In Tennessee, lenders can pursue deficiency judgments after a short sale unless they explicitly waive the remaining debt in the approval letter. This is why expert negotiation is critical.

Fortunately, with the right team representing you, it’s common to negotiate for full deficiency waivers—meaning you do not owe the unpaid balance after your home is sold.

“In my experience working with distressed homeowners throughout Middle Tennessee, the vast majority of our short sale clients walk away free from additional mortgage debt.” – Michael Szakos

Do You Have to Pay Taxes on Forgiven Debt?

Another concern for homeowners is whether the forgiven mortgage balance is taxable. The IRS may consider canceled debt as income, but there are exceptions—especially if the property was your primary residence.

To fully understand your situation, always consult a tax professional before your short sale closes. There may be tax relief programs available to protect you, such as:

• Mortgage Forgiveness Debt Relief Act (if renewed)
• Insolvency exemption if your debts exceed your assets

How Team Szakos Helps You Avoid Owing Money

At Your Home Sold Guaranteed Realty - Michael Szakos Team, we’ve helped hundreds of Tennessee homeowners navigate the short sale process. Our goal is to get you out of debt and into a fresh start—with dignity.

Our strategy includes:

• Negotiating directly with your lender for a deficiency waiver
• Coordinating with legal and tax professionals when needed
• Using our Guaranteed Sale Program: Your Home Sold or We’ll Buy It*

“Families we've served sleep better knowing they're protected. That’s our mission—to give you peace of mind and a path forward.” – Michael Szakos

Don’t Stay Stuck—Get Relief Now

If you're behind on payments or owe more than your home is worth, you’re not stuck. With the right plan, you can move forward—without foreclosure and without lingering debt.

Reach out to us today for confidential, compassionate advice:

• Call or Text: 615-488-7263
• Email: support@teamszakos.com

FAQ

Do Tennessee lenders always pursue deficiency after a short sale?
No. With the right negotiations, most lenders will waive the remaining balance—especially if your hardship is well-documented and your real estate team is experienced.

Can you do a short sale in Tennessee while current on payments?
Yes. While being delinquent may accelerate bank approval, it's not required. The key is proving financial hardship and future inability to pay.