My Blog. Hot Topic: Short Sale & Pre Foreclosure Listings in Chicago & Suburbs, Illinois

 - CHICAGO ILLINOIS SHORT SALES -

by Michael Sorensen - RE/MAX CITY

www.Chicago-IL-Short-Sale-Foreclosure.com/ShortSale

   www.msorensen.illinoisproperty.com   

TEL 773-987-8224

DO NOT Abandon Your Property! Do a Short Sale!

- we are short sale and pre foreclosure experts. We help property owners avoid foreclosure and walk away with no obligations.

- your bank could let you sell your property for less than you owe in mortgages if you are in financial hardship or must relocate.

- we don't want to buy your property. We just want to help you sell it.

- we don't charge any upfront fees and you will not be asked to bring any money to the closing. The Realtors' commissions, the lawyers fees and other closing costs are paid by the bank.

SHORT SALE REAL ESTATE LISTINGS - PRE FORECLOSURE REPRESENTATION FOR PROPERTY SELLERS IN CHICAGO & SUBURBS - NORTHERN ILLINOIS. 

What is a Short Sale? Definition: Short Sale is a Real Estate Sales Transaction where the contract sales price is lower than the property owner's outstanding real estate debt obligations (mortgage loans, real estate taxes, etc..). A lender may agree to adjust the amount owed, and accept less than a full payment, and forgive the rest, in order to get the property sold. Why is it called a Short Sale? The proceeds of the sale fall short of what the seller owes on the mortgage(s). Example: Bank agrees to sell a property for $200,000 on which $240,000 is owed in mortgages and back taxes. Short Sale transactions require a third party approval (seller's bank approval).

Don't pay a dime to anyone! We offer a Professional Short Sale Representation and we are paid by the lender.

- experienced RE/MAX agent specializing in short sales.

- experienced real estate attorneys specializing in short sale transactions and short sale negotiations.   

I have partnered with the best real estate attorneys and short sale negotiators in the business who specialize in the field, to ensure successful transactions.

Who should consider a Short Sale? If you owe more than the property could sell for in today's real estate market, missed mortgage payments and facing foreclosure or are forced to sell due to financial hardship, family emergency, divorce, death of spouse, illness, loss of income, job transfer, etc.. you may qualify for a 'Short Sale'. 

Many lenders agree to short sell a property and take less than what is owed on the mortgage, forgiving the balance, if it makes more financial sense to them than foreclosure, and the seller demonstrates a true financial hardship. If approved, the lender will also pay your back taxes, association fees, real estate broker, real estate lawyer and other fees. We can even get IRS liens to go away, too. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes, and avoid a foreclosure on his record. A bank often chooses a short sale if it results in smaller financial loss than foreclosure. 

Things To Do Before The Short Sale.

1.) Try to refinance your mortgage loan first.

2.) If that doesn't work.. notify your lender of your financial hardship, explain your difficult financial situation and why you can't make mortgage payments and ask if they offer any assistance to modify or re-structure your loan (reduce mortgage payments, lower your interest rate, etc..) to help you.  

SHORT SALE OFFERS. The higher the offer the better your chances of the short sale approval. From my experience, offers within 20% of the property's estimated market value, have the highest chance of getting approved by the seller's lender. The lender will order a BPO (broker price opinion) to establish the property's market value. If you send a low ball offer to purchase a short sale listing, don't be later surprised if your offer gets rejected. Tip: if you really like the property and want to increase your chances of getting it, submit an offer at or slightly above the asking price (most buyers will be bidding below the asking price). If a short sale listing does not generate 'good offers', the lender may decide to go ahead and foreclose on the property, and sell it at the auction or in the open market. A bank often chooses a short sale if it results in smaller financial loss than foreclosure. 

Short Sale vs. Foreclosure. The purpose of a 'Short Sale' is to avoid Foreclosure.

FORECLOSURE. Definition: Repossession of real property. A legal process by which the lender forces a sale of a mortgaged property because the borrower has not met the terms of the mortgage.

Illinois is a Judicial Foreclosure state, which means the lender has to go to court and file a complaint (Lis Pendens) in order to repossess the property. If you miss 3 mortgage payments, on average, your lender will initiate a foreclosure.

The foreclosure processing period is 7 months. If court agrees with the lender, it issues a judgment for the total amount owed, plus the costs of the foreclosure process. The foreclosure sale is conducted by the sheriff or any judge in the county where the property is located. If the property does not sell at the auction, it goes back to the lender and becomes a bank or corporate owned property (REO).

Benefits of Short Sale vs. Foreclosure. 

If the Short Sale is approved then the difference between the sales price and the amount owed is forgiven and reported as 'Settled Debt / Paid in Full'.

If you owed $300,000 (for example), and didn't do a Short Sale, and the property is foreclosed upon, but the lender could only get $200,000 at the auction, the lender may be able to sue you for the remaining $100,000. If you don't do anything during the pre foreclosure processing period, and end up losing your property to foreclosure, your lender could file deficiency judgments against you, seize your assets, place liens on your other properties, garnish your wages, force you into bancruptcy.

'Short Sale' could prevent all that! Call now 773-987-8224 ..before it's too late.

SELLERS - Frequently asked questions about Short Sales.

Q: Do I have to pay income taxes on the amount forgiven in the Short Sale?

A: No! Mortgage Forgiveness Debt Relief Act was signed by President Bush on December 20, 2007. This Act ensures that any deficiency written off as part of the Short Sale will not be taxed.

Q: Will my Credit Score drop due to the Short Sale?

A: Yes. You will lose about 100 points, on average. You should be able to rebuild your credit within 1 year. Many banks don't even report short sales to credit bureaus, as opposed to foreclosure which could stay on your record for up to 10 years or even longer. A ‘short sale’ shows up on the credit report as a ‘settled debt' and is a neutral item. The negative points are from missed or late payments.

Q: What forms do I have to sign?

A: You will be asked to sign a listing agreement with RE/MAX CITY (so we can start marketing your property), authorization letter to release information, write a hardship letter to your lender explaining your situation, provide some financial statements.

Q: Can I live in the property during the Short Sale?

A: Yes, a homeowner can continue to live in the property until the short sale is completed.

Q: Can the Seller profit from the 'Short Sale'?

A: No. Lenders will not allow the seller to profit from the short sale while they are losing money at the same time. The lender agrees to accept less than is owed as a full payment. The seller walks away from the deal with no money but avoids foreclosure.

Q: Can I do a Short Sale myself?

A: Lenders prefer to work with professional REALTORS specializing in Short Sales to ensure the property receives proper marketing and exposure, instead of dealing directly with unlicensed individuals and investors.

Call me for more information or a free short sale consultation - I work closely with experienced real estate attorneys and I offer free service to buyers and sellers interested in pre foreclosure or short sale representation (our fees are paid by the lender).

'Short Sale' can be a very stressful and complicated experience both to property owners and real estate agents, especially if they don't know what they are doing.

Leave it to Professionals.

Sincerely,

Michael Sorensen - Broker Associate & Top Producing Agent for RE/MAX City Realtors.

12 Transactions Closed or Under Contract in 2008 (as of 5/25/2008)

RE/MAX City Realtors - The Official Number 1 RE/MAX Office in Sales in Chicago

Specializing in Traditional Real Estate Sales, Short Sales and Foreclosed Property Listings.

Tel 773-987-8224 -- 7 days a week!

*Desclaimer: information contained herein should not be treated as legal advice. *There are no guarrantees that your short sale transaction will be approved. 

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