The Sibley Group at Keller Williams Realty 455-0100

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You are here: Home / Sellers / Foreclosure & Short Sales / What is a Short Sale?

What is a Short Sale?

What is a short saleA “Short Sale” (Also referred to as: “Negotiated Settlement”, “Short Pay” or “Pre-Foreclosure”) occurs when a Lender agrees to accept less than the amount owed on the original note or total payoff, as an alternative to foreclosure.  If the property is worth less than the amount owed on the loan, even if the Lender forecloses and takes back the property, they know they are going to take a loss.  We can often convince a Lender that they will “do better” if they take less than what is owed now rather than taking the property back by foreclosure and trying to re-sell it.

HOW LONG WILL IT TAKE?

The Short Sale negotiation process can be rather lengthy.  It may take several weeks to several months for an approval.  Many Lenders will have several layers of bureaucracy, insurers, and investors that we will have to maneuver through in order to get a Short Sale approved.  So, it is important to be patient during this long process.

MY HOUSE IS GOING TO FORECLOSURE, WILL I HAVE ENOUGH TIME?

Maybe-maybe not.  Just starting a Short Sale will NOT automatically stop a foreclosure.  However, many times we can convince a Lender to stop the foreclosure to let us attempt to negotiate the Short Sale.  While there are no guarantees, it is worth the attempt.

CAN I STAY IN THE HOUSE?  

The key word in a “Short Sale” is sale.  The purpose of a Short Sale is to get the property sold.  This is not a program that can stop a foreclosure and allow you to keep the house indefinitely.  Moreover, it will be easier to sell the house if it is vacant.   Therefore, you should most certainly begin making plans to vacate the property.

HOW DO I KNOW THIS WILL WORK? 

Again, there are no guarantees.  We cannot, have not, and will not make promises to you that this will work.  Once you miss a payment, the Lender is in charge and can proceed to foreclosure if they want to.  However, we know they do not want to and we are very good at presenting alternatives to the Lender that are often very attractive, as opposed to moving forward with a foreclosure.  We are very proficient at Short Sale negotiations, but NO GUARANTEES are being made as to whether or not the Lender will accept the Short Sale.

WHAT HAPPENS IF THIS DOESN’T WORK? 

Your house will likely go to foreclosure.  A Short Sale can often prevent foreclosure, but not always.

WHAT IS A “RELEASE”? 

A Lender may offer a “release”.  Which is a security instrument against the property in exchange for less than the total amount of the note.  A release will allow the property to be sold without paying off the obligations of the note.  However, the note is not satisfied.   Advantages: This will allow the property to be sold and thus avoid foreclosure.  Disadvantages: The remaining debt on the property (sometimes called a “deficiency”) still exists. In other words, you are still liable for the note and still owe the money to the Lender.  Reality: The lender may choose not to pursue the deficiency unless you have other significant assets; however, foreclosure will often result in the same deficiency being owed to the Lender.

WHAT IS A SATISFACTION?

A Lender may agree to accept less than they are owed as complete and total satisfaction of the note and release its lien against the property.  Advantages: Your note and obligation to the Lender are satisfied for less than you owed.  When the property is sold, the debt is paid off completely.  Disadvantages: You may have some tax consequences that you should discuss with your tax advisor due to the fact the Lender is making money you owe them disappear.  Sometimes our negotiations are successful in obtaining a satisfaction.  Although, there are other times where the lender will only negotiate to a release.

HOW CAN YOU GET STARTED? 

The Lender will require a review of a financial package that usually includes: (2) month’s banks statements, (2) months paycheck stubs, (2) year’s tax return, Financial Worksheet and other information.  The leading cause of delay and even denial of our offer to the Lender is caused by the Seller failing to cooperate and/or deliver the necessary items in a timely fashion.  To help us succeed, please find as much of this information as you can right now.  These things will help us work faster and increase your odds of a successful Short Sale.

Learn more about the Short Sale Process.

 

Request a Short Sale Evaluation

If you are facing the possibility of foreclosure or are considering a short sale, do not hesitate to contact us today. We specialize in mitigating foreclosure losses, and we can help you assess your particular situation.
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WHAT OTHERS ARE SAYING

Listened, were easy to reach, and delivered on what they promised.

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Ashley, New Orleans, LA
 

I worked with Gana, OMG what a GEM !!! Gana made this entire experience pleasurable. Her knowledge, patience and go-getter attitude won me over 100%.

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Monique C Thomas
 

I worked with Gana to purchase my first home in March 2018. Gana definitely helped me out during this process. She stayed in contact with me and was very good with her timeliness on updates. She was there throughout the whole process and was very knowledgeable when i had any questions. Gana made sure I understood any documents that I had to sign before I completed the action. I would definitely recommend her!

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Lamar, Slidell, LA
 

There are not enough words that can describe Lana. She absolutely made our experience of finding a home as easy and stress free it could be. Her communication skills are top notch. She answered all of our questions, which were many, in a very timely manner. She went out of her way to set up appointments and send us links for everything that we needed to get done. She did everything in a spirit of excellence. There is no other person I would want or recommend as an agent than, Lana Leonard(...)

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Shawn & Suzanne, Lacombe, LA
 

I bought my first home!!! Jordan provided exceptional service. At first, I was looking to rent, but she showed me I could get more of what I needed for less if I considered purchasing a home. It is an investment in my future and I am so glad she helped me feel confident in my ability to buy a home. The Sibley Group is a wonderful team that is there for your needs and supports you every step of the way. I highly recommend them, especially Jordan. She was attentive, resourceful, knowledgea(...)

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Melissa, Covington, LA
 

Mrs. Gana is quite the gem, in fact, the entire Sibley Group were all so helpful and made our first home buying experience a breeze.

We were totally lost when it came to finding a mortgage company and having a realtor with such expertise and experience really put us at ease. She set up connections with several lenders and from there we were put on a path to home ownership!

I would recommend Mrs.Gana a million times again and the Sibley(...)

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Michelle, Slidell, LA
 

The decision to sell our home and to use the Sibley Realty Group was a year long process. We were concerned about determining the right time to sell and determining a fair and appropriate asking price. We had questions about how to adequately prepare our home for photos and showings. We were concerned about security and showing our home while we were away on vacation. John Sibley addressed all of our questions and concerns. He walked us through the process from listing to closing. He was a(...)

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Annemarie & Jerry, Slidell, LA
 

We were having troubles trying to figure out the particulars of buying a house and were a little intimidated about approaching a Real Estate agent. Those fears were put to rest after meeting Gana.

She not only guided us through the entire process, but made it a point to go over the contract with verbiage that we understood as first time home buyers- that was important.

The entire experience was smooth, as she laid to rest any fears we(...)

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Willliam, Slidell, LA
 

Everyone at the Sibley Realty Group was exceptional. From the first phone call to the closing of the home we had the best service. I would recommend Jordan and her team to anyone. Awesome Job Guys! And thanks again.

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Anonymous, New Orleans, LA
 

Gana made this transaction easy to understand for us as first time home buyers. Gana was very in tune with us when she could tell I didn't understand something. She slowed everything down and made sure I understood before we moved on.

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Anonymous, Slidell, LA
 

About Us

The Sibley Group has a team of Realtors to meet all of your real estate needs throughout the New Orleans Metropolitan area. We have agents that specialize on the Northshore and Southshore, including New Orleans, Slidell, Metairie, Covington, Mandeville, Pearl River, and Lacombe.


Trust a real estate team with a long-standing tradition of service, expertise, and professionalism in the local area.


John Sibley reviews
The Sibley Group
Keller Williams Realty 455-0100

3197 Richland Ave, Metairie, LA 70002

Northshore: 985.326.9755
Southshore: 504.571.9755
Broker: 504.455.0100

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