What is a Short Sale?
A short sale, negotiated settlement, or short pay occurs when a lender agrees to accept less than the amount owed to pay off a home loan as an alternative to foreclosure. Lenders usually agree to short sales because they know if they take the property back through foreclosure they are usually going incur higher costs leading to suffering a much larger loss.
How Does Sheri Dettman And Associates Get Paid?
Sheri and her short sale team of specialists (Realtors that were former bankers) will negotiate directly with the bank for all real estate agent commissions. In most cases, the bank will offer the listing agent a smaller than average fee for performing the marketing and negotiation responsibilities associated with representing a seller. The lender will pay any agent fees at the time of closing from escrow proceeds. If the short sale is not completed we don't get paid.
How Long Will it Take?
It may take several weeks or usually several months before a lender and homeowner will agree on acceptable terms. Many lenders have layers of bureaucracy, insurers and investors that we will have to maneuver through in order to get your short sale approved. Our job is to keep you informed during each step of the process throughout the duration of the short sale transaction.
What If My Home Is Going Into Foreclosure?
Starting a short sale will not automatically stop the lender from starting the foreclosure process or setting an auction date. However, we have successfully convinced lenders to postpone a foreclosure sale date while we negotiate a short sale. Although there are no guarantees, we will do everything possible to find a buyer for your homed before the lender follows through with a foreclosure. Our efforts are successful much of the time.
Can I Stay in the House?
The purpose of a short sale is to get the property sold as soon as possible. Ultimately, you will be moving. This is not a program that can stop a foreclosure and allow you to keep the house indefinitely; that is a loan modification. Short sales are many times a lengthy process and you can choose to stay in the home until the sale is complete.
Legal and Accounting Advice - Get It!
When in default, lenders will continue to attempt to collect your debt during the short sale process. They may ask you to give them your deed in lieu of foreclosure or attempt to collect your debt in a variety of ways that may or may not be consistent with your goal of completing a short sale.
Before starting the short sale process you should discuss your options and receive guidance from a qualified real estate attorney who has participated in numerous short sale and foreclosure procedures here in California. You should also check with your accountant or CPA.