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

John Sibley came highly recommended by a neighbor and he sold our house not only once but twice! A pipe burst upstairs and flooded the house and the first sale was cancelled. We were out of town and John and his staff handled everything from informing us of the problem to working with the adjusters giving them access to the house. When we got back in town just three days later, the damage was already cleaned up and we were ready to begin the repairs!

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Marilyn, Slidell, LA
 

We were very happy with the service provided. As first time home buyers, we were initially anxious, however, John and the rest of the group helped us understand the home buying process and what to expect. They made sure we were well prepared by the closing and that our interests were top priority.

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Jimmy, New Orleans, LA
 

John was great to work with. He provided good sound advice relative to marketing our home. He kept me informed through every step of the process from the initial listing to the closing. It was a great experience and I recommend the Sibley Group to anyone interested in purchasing or selling real estate property.

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Richard, Madisonville, LA
 

John Sibley and Lana Sibley Leonard were very instrumental in marketing my home both personably and professionally. Their drive and incentive made it possible for my home to sell in a quick, timely manner.

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Christina, Slidell, LA
 

Everyone throughout the process was extremely helpful. Dianna spent a lot of time, including late hours helping us find the right house.

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Chris, Slidell, LA
 

John & company were always negotiating on my behalf and won the battle such as letting me have an Estate Sale w/o charging me rent for one week and then the new owner moved in. The Sibley Realty Group was always professional in every way.

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Anonymous, Slidell, LA
 

Sibley's group is the best we've used.

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Cathy & Will, Slidell, LA
 

John and the Sibley Realty Group had a great command of the market prices and an excellent marketing strategy to get new groups of people to look at our property. By using new technology to market to different buyers and target new groups of potential buyers the Sibley Realty Group met our goal of selling within 3 months. The entire office helped make the transition smooth and Lauren is very helpful making sure everyone is on the same page as you go through the closing process. It is good t(...)

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Kevin, New Orleans, LA
 

Sibley Group delivered as promised.

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Stan, New Orleans, LA
 

We are extremely grateful to have found Sibley Realty group. Initially I had called other realtors who were not so responsive since we did not live in the area. Jordan contacted me back right away and made us feel at ease with our first home purchase. We lived 7 hours away from where we were buying and Jordan was very accomendating to our schedule of only being able to make it down on the weekends. The whole office are a bunch of true professionals that we owe more gratitiude to then we can(...)

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Troy, 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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