Short Sale Information
This page is intended to represent an overview of the short sale process. For more information, or a free assessment of your current options, please contact us.
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. The lender usually agrees to a short sale due to the costly foreclosure process were they will take a much larger loss.
Short Sales Protected By New California Law Governor Jerry Brown signed into Law Senate Bill 458, prohibiting a deficiency after a short sale of one to four residential units, regardless of whether the lender is a junior or senior lien holder. Effective immediately, lenders can not require a borrower to owe or pay for a deficiency in a short sale. Any purported waiver of this rule should be void and against public policy. To view the full law, go to www.leginfo.ca.gov and look up Senate Bill 458.
In addition, lenders are now prohibited from "dual tracking" (pursuing foreclosure and short sale/modification simultaneously.
How long will this process take?
There is no set timeline in the short sale process. It may take several weeks and or months before a lender and home owner can agree on acceptable terms. However, because of the increased popularity of the short sale option, banks have been streamlining the process to provide quick answers and a smoother process. We will keep you informed of the progress throughout the entire transaction.
But my house is going to foreclosure, will I have enough time?
Starting a short sale will not automatically stop the lender from starting the foreclosure process. However, our staff has successfully convinced lenders to postpone a foreclosure while we negotiate a short sale. While there are no guarantees, we will do everything that we can to get your home sold before the lender follows through with their foreclosure!
Can I stay in the house?
Yes, you can stay in your home until the completion of your transaction. In a short sale situation, you are working with the bank to get your property sold. You are an important part of the short sale process for the lender. By keeping you in the home, the lender is more likely to keep the home in its present condition and maintain a higher value than if you were to leave.
If I believe I should look into a short sale, what will I need?
The lender will require a view of your financial situation:
What fees will I have to pay should I choose to pursue a short sale?
Your lender will pay all fees! In most cases, the bank will offer the Brokers a smaller than average fee for performing the marketing and negotiation responsibilities associated with representing a seller.