Getting a lender to agree takes documentation: proof of hardship, a realistic listing price backed by comparable sales, and confirmation the seller cannot make up the gap another way. Since many Saskatchewan mortgages are CMHC insured, the insurer's consent may also be required before any shortfall is forgiven.
That insurer can still hold the seller responsible for part of the shortfall even after the lender agrees to the sale price, a detail a lawyer needs to confirm in writing, at legal fees typically $800 to $1,500, before an offer is accepted.
A short sale is rare in Saskatoon's current market, but knowing the mechanism matters if you are the one seller it applies to. Get your hand-reviewed valuation from Joel Dyck.