How long does a PennyMac short sale typically take?

Most PennyMac short sales close in 60–120 days from offer acceptance, depending on completeness of the hardship package, whether there's a junior lien (HELOC, second mortgage), and lender workload. A complete file submitted on day one is the single biggest factor in speed.

Will PennyMac postpone the trustee's sale once I list for short sale?

Often, yes — but not automatically. PennyMac typically postpones a trustee's sale only after a complete short sale package and a qualified buyer offer are in active lender review. The earlier inside Arizona's 91-day post-Notice-of-Trustee's-Sale window we engage, the higher the odds.

Will PennyMac forgive the deficiency on my Arizona short sale?

Arizona's anti-deficiency statute (ARS §33-814) protects most owner-occupied homes after a trustee's sale, but a short sale is a voluntary transaction, so the deficiency waiver has to be written into PennyMac's approval letter. I negotiate that as a non-negotiable on every file — never accept an approval that leaves the door open to collection.

PennyMac Short Sale Arizona — Process & Approval Tips

PennyMac in the Arizona market

Heavy Ginnie Mae exposure means many PennyMac short sales in Arizona involve FHA or VA loans, which run on different programs (FHA PFS / VA Compromise Sale) than conventional short sales.

How a PennyMac short sale works

Submission through PennyMac's portal. Loss mitigation specialist assigned, BPO ordered, package routed to the investor or HUD (for FHA) or VA. FHA Pre-Foreclosure Sale requires HUD's specific net-to-HUD calculation, which is typically 84%–88% of appraised value depending on time-to-foreclosure.

Typical timeline

FHA PFS files: 75–120 days. VA Compromise Sale: 90–150 days. Conventional: 60–100 days. The HUD or VA review step adds 2–3 weeks vs. private investor review.

Paperwork PennyMac requires

Standard package plus FHA-specific or VA-specific forms. FHA PFS requires HUD-1 / Closing Disclosure preview, an FHA-specific approval letter (Approval-to-Participate), and time-bound deadlines. VA requires VA Form 26-6850 (or equivalent) and lender certification.

Common challenges with PennyMac

FHA PFS net-to-HUD requirements can be the deal-breaker — if the offer is too low to hit HUD's minimum, the file can't be approved as a short sale. Knowing HUD's required net before listing prevents wasted weeks.

Programs PennyMac participates in

FHA Pre-Foreclosure Sale (PFS), VA Compromise Sale, HAFA (limited investor participation), conventional short sale.

PennyMac-specific quirks worth knowing

PennyMac is reliable on FHA PFS files because of its volume — they have specialists who know the program inside out. Conventional files sometimes feel more rushed and less personalized.

Legal name: PennyMac Loan Services, LLC

Educational information about PennyMac's general short sale practices in Arizona. Specific approval terms vary by file. Not legal, tax, or financial advice. Talk to a licensed Arizona attorney or HUD-approved counselor about your specific situation. I am not affiliated with PennyMac.

Common questions — PennyMac short sales in Arizona

Yes. PennyMac processes Arizona short sales through Arizona's standard non-judicial foreclosure framework (ARS Title 33). Approval depends on a verified hardship, a documented inability to keep paying, and a fair-market offer that meets the lender's net minimum after costs.

PennyMac Short Sale in Arizona