Chicago Illinois Short Sales
A short sale is a sale of real estate in which the proceeds from selling the property will be less than the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens' full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay the deficiency of the loan, unless specifically agreed to between all parties. A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower.
Most creditors have required the borrower to prove they have an economic or financial hardship. But in many cases this is no longer necessary.
Creditors holding liens against real estate can include primary mortgages, junior lien holders—such as second mortgages, home equity lines of credit (HELOC) lenders, home owners association HOA (special assessment liens)—all of whom will need to approve individual applications for a short sale, should they be asked to take less than what is owed.
Most large creditors have special loss mitigation departments that evaluate borrowers' applications for short sale approval. Often creditors use pre-determined criteria for approving the borrowers and the terms of the sale of the properties. Part of this process typically includes the creditor(s) determining the current market value of the real estate by obtaining an independent evaluation of the property with an appraisal, a Broker's Price Opinion, or a broker opinion of value (BOV). One of pertinent aspect for the borrower in this process is putting together a proper real estate short sale package including hardship letter explaining why a short sale is needed.
Depending on each creditor's policy and the type of loan, creditors may accept applications from borrowers even if the borrower is not behind in their payments. Due to the overwhelming number of defaulting borrowers due to mortgage failures and other causes as part of the 2008–2012 global financial crisis, many creditors have become adept at processing such short sales applications; however, it can still take several months for the process from start to finish, often requiring multiple levels of approval.
I work with experienced teams of professionals who can expedite your short sale. In most cases, sellers are eligible for relocation cash back at closing.
With a Short Sale, your credit can be restored within 1 to 2 years. If you go into Foreclosure, it could take 7 years before your credit is cleared. I am an experienced Short sale agent. You pay no fees. The bank pays all expenses. My team has closed many Short sales in Chicagoland. Let us help to restore your credit and your life. Call me at 773-494-9125 for more information.