Frequently Asked Questions for Sellers
To successfully negotiate a reduction in the mortgage payoff amount (also called a short sale), we must show that you are in imminent danger of default, in default or in foreclosure.

Question 1: Do I have to be behind on my mortgage payments to be able to participate in a short sale?
The Sheriff’s sale (foreclosure sale) takes place on the courthouse steps in the county where the property is located. At the sale, the Sheriff accepts bids from buyers to purchase your property for at least $1 above the minimum amount set by your lender. If you don’t repay the successful bidder with the full amount due plus interest and costs within the redemption period, the successful bidder now owns your house. You do not have to attend the Sheriff’s sale.

Question 2: Can I do the short sale myself?
Lenders require that the seller not receive any money from the sale of real estate. As one lender told us, “ why should we take a discount on the amount we are owed and reward the borrower?”

Question 3: Can I get some money from the sale of my house?
In Michigan, most foreclosures are done by advertisement, not in court. To foreclose, you must be 90 days behind, your lender must advertise the foreclosure in a local paper for a minimum of 4 weeks and they must post a copy of the advertisement some where on your property.

Question 4: I have not been served with any court papers. How can my lender foreclose on me?
No. Following the Sheriff’s sale, you have a redemption period of typically 6 months. However, if you have more than 3 acres or have paid your mortgage down by more than a third, you have 12 months to redeem. If the property being foreclosed is found to be abandoned , your lender can shorten your redemption period to 30 days from the date of the Sheriff’s sale.

Question 5: On the day of the Sheriff’s sale, is the Sheriff going to come and evict me?

Question 6: My lender just offered me $1,000 to move out. Is this a good deal?
What your lender is offering you is called a deed in lieu of foreclosure. You must sign the deed to your house over to the lender. This has serious credit consequences and is viewed as a voluntary foreclosure. Your lender may come after you for any money they have lost after they sell your house.

Question 7: How do I get more information?
For a no obligation consultation to learn more about how we can help you, call: Jeff at (517) 243-1225

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