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- CHICAGO SHORT SALES -
ILLINOIS PRE FORECLOSURE SALES
www.ChicagoShortSalePro.com
Michael Sorensen Group
Licensed Real Estate Broker (IL)
Certified Short Sale Specialists
Work with The Best..
One of The Top Short Sale Agents in Illinois
26 Short Sales Approved This Year (2009)!
> See My 70 Listings
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90% Short Sale Approval Rate
It's The Experience!
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TEL (773) 987-8224
TEL (847) 696-1664
email me: sorensenhomes@yahoo.com
*short sale applicants should be in legitimate and verifiable financial or economic hardship.
RE/MAX CITY
7020 W. Higgins Ave, Chicago IL 60656
#1 RE/MAX Office in Chicago!
Top 10 Real Estate Office in The Entire MLS System (source: Midwest Real Estate Data, 2009)
Serving Chicago & Suburbs
REMAX CITY - Top Chicago Real Estate Agents and Brokers specializing in Short Sales Foreclosures Auctions REO Bank owned properties in Chicago & Suburbs in Northern Illinois.
www.SELLWITHME123.com
"if you're in some kind of financial hardship, you qualify for a Short Sale"
Do a Short Sale!
Stop Foreclosure!
List For Free!
+ Get a Free Thank You Gift from me after closing.
Michael Sorensen - BROKER ASC, ABR, RE/MAX Executive Club Member
Short Sale Expert - Foreclosure Prevention Specialist
Top Producer for The #1 RE/MAX Realty Office in Chicago - RE/MAX CITY
Michael Sorensen is a Licensed Real Estate Broker in Illinois specializing in Short Sale Homes and Pre Foreclosure Properties.
Recent Awards & Recognitions:
2006 - Top Producer Award. Recognized by the Chicago Association of REALTORS for his outstanding sales achievements.
2007 - RE/MAX Executive Club Award. Recognized by RE/MAX International for his outstanding sales accomplishments.
2008 - Top Office Lister & Top Producer for The Number 1 RE/MAX Office in Sales in Chicago. Michael Sorensen currently ranks in the Top 3% REALTORS in Illinois.
What is a Short Sale? It's a real estate sales transaction where the homeowner's lender(s) agree, per owner's request, to reduce the loan balance, so that the property can be sold. The lender usually cancels and forgives the difference (the shortfall) if the seller is in legitimate financial hardship. The purpose of a short sale is to get the property sold before it's auctioned off, avoid foreclosure and minimize damages both to the lender and the property owner.
Short Sale allows the property owner who is in some kind of financial or economic hardship to sell the property for less than is owed on the mortgage.
Short Sale Example: If the loan amount on your property is $220,000 and the property can only be sold for $180,000 (less $15,000 in closing costs), you will only have $165,000 left to pay to the bank. In a short sale, the bank will have to reduce the outstanding loan balance to $165,000 in order to allow the short sale to proceed.
Why Banks agree to take such a huge loss? Banks know that should the property go into foreclosure, by the time they fully repossess it, the property's condition will most likely deteriorate, consequently resulting in a lower sales price. In addition the bank avoids expensive costs of foreclosure and a burden of owning and maintaining the foreclosed property which will have to be sold eventually, anyway. In other words, short sales generate more money to lenders than foreclosed properties.
Short Sales are often called Pre Foreclosure Sales, the idea is to get the property sold before it goes to auction.
- Do not abandon your property!
- Don't let it go into foreclosure!
- Let us negotiate a short sale for you!
There are no out-of-pocket expenses to my short sale clients for any of our short sale service (we are paid by the bank)!
We are Chicago Short Sale Experts - Illinois Pre Foreclosure Specialists.
Who Qualifies for a Short Sale?
Most lenders agree to consider a short sale, however the seller must be in some kind of hardship to get it approved.
Short Sale should be your last option before foreclosure, and you should only use it if you don't want to keep the property.
Please let us know if you are considering the following: Loan Modification, Forbearance, Deed in Lieu or Bankruptcy, as these may delay the short sale approval process or even make it impossible while they are pending.
If you apply for a loan modification, your bank will not consider a short sale request at the same time. You must wait until the loan modification review is completed or withdraw your request, in order to proceed with the short sale.
Options To Consider Before a Short Sale.
Refinancing. Short Sale should be your last resort in order to avoid foreclosure. Try to refinance your mortgage loan first.
Sell The Property. Contact me and I will run the numbers to see if it's possible to get the property sold without doing a Short Sale.
Loan Modification. Notify your lender of your financial or economic hardship, explain why you can't afford to no longer make mortgage payments and ask if they could offer any assistance to modify or re-structure your existing loan into something that you could live with (reduced mortgage payments, lower interest rate, etc..).
Where do you see yourself in 3 or 6 months?
- if you want to keep the property and think you might be able to get back on track with your mortgage payments but need some assistance from the bank, you should contact your lender and ask for a Loan Modification (i.e. interest rate adjustment) or a Forbearance Plan to temporarily reduce, delay or even freeze payments.
A borrower who is willing but unable to make payments, may request forbearance from the lender. Forbearance allows payments to stop temporarily or decrease in amount for a specific length of time. Some lenders might be willing to temporarily reduce or even freeze your mortgage payments, to help you get back on your feet, financially. The lender may grant forbearance of principal, interest or both. The borrower is responsible for repayment of accrued interest charges.
Deed in lieu of foreclosure.
A deed in lieu of foreclosure occurs when the borrower voluntarily conveys all interest in a real property to the lender to satisfy a loan that is in default and avoid foreclosure proceedings. Deed in lieu requires bank approval and is rarely exercised in Illinois, most lenders don't want to own and maintain properties that will have to be sold eventually anyway. Short Sales make more financial sense to lenders.
Do you want to keep the property?
If you would like to keep your property, then try the options above first. If you are unable to keep the property or your loan modification or forbearance application have been declined by your lender, then a short sale should be the option in order to avoid foreclosure.
Short Sale Process Overview.
To start, we will need the following:
1.) LISTING AGREEMENT - sellers signs a listing agreement, short sale addendum & authorization form.
2.) HARDSHIP LETTER - a brief, written explanation of your financial hardship signed and dated by each borrower (examples available)
3.) FINANCIAL WORKSHEET - disclosure of income, assets, expenses and liabilities (form available)
Your lender may also request the following from you:
4.) MOST RECENT BANK STATEMENTS - checking, savings, money market accounts, etc...
5.) TWO MOST RECENT PAYROLL STUBS - or letter of explanation if not available: "I don't get payroll stubs because I'm self employed."
6.) COPIES OF MOST RECENT INCOME TAX RETURNS
**or letter of explanation if these are not available: "I don't get pay stubs, I don't have bank accounts, I'm unemployed, etc..."
Most important..
7.) PURCHASE OFFER. A Short Sale can not be completed without a purchase offer. My job as your listing agent is the marketing of your property in order to bring as many offers as possible. My short sale negotiators will then submit and get one of the offers approved by the bank. The offers must be justifiable by recently closed comparable properties in the same neighborhood. The offer is submitted to bank for consideration while the property is being marketed for back up offers.
Tips For Short Sale Sellers.
1.) Aggressively price the property.
2.) Allow at least 4 weeks marketing time.
- do not accept any offers until the property has been on the market for 3 to 4 weeks minimum, then select the highest and best offer from a qualified buyer that is willing to wait and able to close the deal.
3.) Continue showing the property. It's very important that the short sale seller continues showing the property to other buyers while the 1st offer is pending bank approval. You should have at least two back up offers lined up in case something goes wrong with the first buyer. The first buyer rarely ends up buying the property, many times it's the 2nd or 3rd bidder who gets the property. Why? They get tired of waiting, change their mind, withdraw their offers, lose their jobs, offer gets rejected by the sellers lender, lender counteroffers and the buyer is not willing to accept the counter, etc.. if you don't have back up offers, you go back to square one.
Typical Short Sale Process & Timeframe
- Bank assigns a short sale negotiator (1 to 4 weeks). Usually after a purchase offer is submitted.
- Bank orders the property appraisal (1 to 4 weeks).
- Your Lender will not respond to any offers until the appraisal or BPO comes back, that will determine the current market value of the property. Bank then compares the appraised value to offer(s) received and responds. Bank can approve, reject or counter any offer received. If one of the offers gets approved by the bank, the closing is scheduled. Foreclosure gets dismissed.
*Shortsale must be an "arms-length" transaction. The property may not be sold to the sellers family members.
*The seller (or tenants) must also agree to cooperate with the listing broker and make the property available for showings to potential buyers.
*The seller must be willing to move out prior to closing, usually 4 weeks after the purchase offer is approved by the bank.
How long does it take to close a Short Sale in Illinois? It usually takes 60-90 days on average to get the short sale approved by all lenders/ lien holders/ investors/ private mortgage insurance company, etc.. from the time the offer is sent to bank. Different lenders have different guidelines. For example, Countrywide is absolutely the worst lender when it come to short sales, it takes forever (months) to get any kind of response from them. Citimortgage, this lender, no matter what offer you send to them, they will tell you that it's $10,000 short. It also depends on how many and what lenders or liens are attached to property, location of property, condition of property, demand for specific type of property, wheather the purchase offer in line with the property's appraised value, experience of the listing agent, cooperation from the seller/ tenants, easy access to property, how much time is left before the auction date, etc...
Why choose Michael Sorensen Team for your Short Sale service?
- Experience. I'm currently selling more than sixty short sale properties exclusively listed with me.
- there is no charge to our seller clients for any of our short sale service. You will never be asked to pay us any money, regardless if the deal closes or not. We negotiate all of our fees and are paid directly by your lender from the proceeds.
- we are short sale and pre foreclosure experts. We can help you sell the house for less than you owe on the mortgage and walk away. The foreclosure gets dismissed. No deficiency judgement. No Bankruptcy. Credit report typically reflects a short sale as "settled debt", some lenders don't even report short sales to credit bureaus.
- we can negotiate a short sale even if the seller is in advanced foreclosure and the auction is already scheduled.
- we have partnered with the largest short sale negotiation firms and real estate attorneys specializing in short sale and foreclosure law, who close more short sale transactions than anyone else in Illinois.
- we have established relationships with virtually every lender, so we are able to properly 'package' the short sale and get it to the right person in the right format for an immediate response.
- 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 charge any upfront fees and you will not be asked to bring any money to the closing.
- The Realtors' commissions, the Lawyers fees, our Short Sale negotiators and the Seller's closing costs are paid by the bank.
SELLERS BEWARE! Illinois Association of REALTORS recently issued a warning of numerous mortgage rescue scams and foreclosure rescue scams. Companies and individuals operating in the Chicago Metropolitan area, who claim to save your home and your credit from foreclosure.
- We will never try to buy your property from you, so we can "flip" it later and make a huge profit, and we will never ask you to sign the deed over to us. We just want to help you sell it.
Remember, only do business with reputable companies and look for a brand name you can trust.. look to RE/MAX.
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 proceeds of the sale are lower than the property owner's outstanding real estate debt obligations (mortgage loans, real estate taxes, commmissions, etc..).
A Lender may agree to adjust the amount owed, and accept less than a full payment, by allowing the sale to a third party for less than is owed on the mortgage, and forgive the balance, in order to get the property sold and avoid foreclosure, if the seller is in a financial hardship or is forced to relocate (i.e. due to a job transfer or a family emergency).
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 and lien holders 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 for my clients.
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 or economic 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 commissions, real estate lawyer and other fees. We can even get the 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.
HOW DOES A SHORT SALE WORK?
Seller signs a listing agreement with a Realtor along with authorization form (giving us permision to talk to your bank). The property is put up for sale on the market, just as you would normally do with any broker, with the exception that real estate commissions will be paid by the lender and the offers are contingent upon bank approval. Short Sale properties are almost always sold "AS-IS" and the buyer is responsible for any required inspections, repairs or escrows.
Offers received from the interested buyers are then sent to your lender(s) for a short sale consideration. The lender may accept, reject or counteroffer any offer received. If the lender approves the offer, then we can close, the difference between the contract's purchase price and the amount owed by the seller is usually forgiven and considered settled debt, paid in full.
The key elements to a successful short sale transaction are: the seller is able to prove his financial hardship, and the purchase offers are attractive enough to obtain a shortsale approval and dismiss the foreclosure.
When you choose Michael Sorensen Team to represent you in your Short Sale Transaction, you can expect the best! Your team will include a Top Producing RE/MAX Broker, Top Lawyer specializing in Short Sales, and a team of experienced short sale negotiators.
The seller does not have to pay us any money for our short sale service, regardless if the deal closes or not., we negotiate our fees directly with you lender.
Short Sale vs. Foreclosure.
The purpose of a 'Short Sale' is to avoid and dismiss 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. After 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 prevents Foreclosure! Call 773-987-8224 ..before it's too late.
Frequently Asked Short Sale Questions
Q: Who do you represent in a Short Sale, the Seller or the Bank?
A: We represent the property seller (legal owner of record).
Q: Who pays the seller's closing costs, real estate broker commissions, attorney fees, back taxes, unpaid assessment dues and other fees?
A: The Bank.
Q: Do I have to pay taxes on the cancelled mortgage debt?
Option 1. Principal Residence (seller occupied property). Mortgage Forgiveness Debt Relief Act (Bill HR 3648) was signed by President Bush on December 20, 2007. Prior to Dec 2007 any forgiven debt was treated as income. What HR 3648 does is eliminates your liability for that income. This Act ensures that any deficiency written off as part of the Short Sale will not be treated as taxable income. Your lender will submit a 1099 form to the IRS after the short sale is completed (since their loss is your gain). You should report the disposition of the real estate property to the IRS along with form I-982 and a copy of the closing statement showing that you did not make any profit on the sale. The closing statement should reflect net proceeds to seller equals: 0.00.
"When your home is losing value and your family is under financial stress, the last thing you need is to be hit with more taxes. So I'm working with members of both parties to pass a bill that will protect homeowners from having to pay taxes on cancelled mortgage debt." - President George W. Bush.
Option 2. Insolvency. You are insolvent when your total debts are more than the market value of your total assets. When the debt is cancelled, some or all of the cancelled debt may not be taxable to you.
*Assistance of a good tax professional is highly recommended.
Q: Will a Short Sale affect my credit history/ score?
A: Yes, but not as much as a foreclosure would. You should be able to rebuild your credit within 1 year. Short Sales are not reported on a Credit History, Foreclosures are reported on Credit History (300 point loss). Foreclosure is the most credit devastating item one could have on their credit report. A ‘short sale’ settles your mortgage debt on the credit report. The loan is typically reported as 'paid in full', 'settled' or 'paid as agreed‘. Short Sale is a neutral item on a credit report. There is no specific reporting item for 'short sale'. The negative points are from missed or late payments and not from the short sale itself.
BENEFITS of SHORT SALE vs. FORECLOSURE
Credit History. Short Sales are not reported. Foreclosures are reported.
Public Records. Short Sale is not a Public Record item. Foreclosure is a Public Record forever. You will be obligated to disclose a foreclosure on various applications for the rest of your life.
Employment. A Short Sale is not reported on a credit report therefore is not a challenge to employment. Foreclosure in many cases is ground for immediate reassignment or termination in sensitive positions.
Security Clearance. Short Sale on its own does not challenge most security clearances. Foreclosure is the most challenging issue against a security clearance. If you are a police officer, in the military, Security, or any other position that requires a security clearance, in almost all cases clearance will be revoked and position will be terminated.
Q: Can I do a Short Sale if I have a Conventional Loan and a Home Equity Line of Credit or the 2nd mortgage?
A: Yes. The first mortgage will offer money to the home equity lender (or the 2nd mortgage) to obtain a release. The second mortgage may ask for additional funds, that we will negotiate at a substantial discount for the seller. We may also attach the contract addendum and ask the buyer to pay part of the seller's closing costs not covered by the seller's bank. This is necessary because the Foreclosing Lender is usually not willing to pay more than $1,000 to release subordinate liens.
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 right away), sign authorization form, write a hardship letter to your lender explaining your situation (samples available), provide some financial information to justify your hardship: bank statements, pay stubs, tax returns, etc..
Q: What are my odds for the short sale approval?
A: You chances are over 90% or 9 in 10 when you choose me and my team of attorneys and negotiatiators.
Q: Can the seller 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 a 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 closing settlement (HUD-1) must state: Proceeds to Seller: $0.
Q: Can I short sell my property to a family member?
A: No. A short sale must be an "arms-length" transaction. The property may not be sold to anyone the seller has a relationship with.
Q: Can I do a Short Sale myself (For Sale By Owner)?
A: Sometimes you can. Some Banks (HUD, FHA and others) require the property to be listed with a licensed real estate agent. Banks prefer to work with reputable professional REALTORS specializing in Short Sales to ensure the property receives necessary marketing and exposure, instead of dealing directly with unlicensed individuals.
- Many agents will not even mention properties listed FSBO to their buyers.
- Properties that are listed with Realtors tend to sell close to the current market value.
- In addition, we have established connections with virtually all lenders out there and befriended many bank negotiators.
Q: I'm not selling this house for under $400,000!
A: Don’t get too hung up about the price. If an experienced short sale agent wants to set a low price, let him do it, there is a reason behind that. All you should care about is getting the short sale approved by the bank and getting the property sold.
The listing price needs to be set according to comparable homes closed transactions in your area in the last 60 days, not based on what you owe to the bank or what your neighbors are asking for their home. The listing price should be adjusted every 2 weeks or so, until interest and offers are generated. Offers must be sent to bank prior to the sheriff sale date (auction). You don't want to run out of time with no offers at hand and the bank to foreclose on the property.
Q: I owe $600,000 but the house will probably sell for $300,000. Will the bank accept such a huge loss?
A: It typically has nothing to do with the loan payoff. It is about the value of the real estate today, which is based upon bank appraisal of the property.
Q: Bank said they are going to go ahead and foreclose on the property, can I still do a Short Sale?
A: Yes. You are the legal owner of record and can try to do a short sale until the actual foreclosure sale date (auction) takes place, then your redemption period usually ends. In Illinois, you would have to have missed at least 3 mortgage payments before the bank can initiate foreclosure proceedings which will take 7 months to complete before the property can be auctioned off. Don't wait. You should plan ahead and list the property as soon as possible in order to generate offers, and continue showing the property until one of the offers is approved by the bank. It's possible to get the last minute short sale approval from the lender just before the property goes to the auction.
Q: Bank changed the locks on my property, what should I do?
A: Change them back. You own the property until the actual foreclosure sale date (auction) takes place. Many banks try to preserve properties that appear to be abandoned by changing property locks, boarding up or winterizing them to prevent damage. Contact us and we will check on the foreclosure status.
Q: Can I do a Short Sale if I applied for a Loan Modification, Forebearance or filed for Bancruptcy?
A: You need to decide whether you want to keep the property or not. You should apply for a Short Sale only if you don't intend to keep the property. If you want to keep the property but need assistance from your lender, you should request a Loan Modification or a Forebearance Plan. Short Sale process will be stalled and can not be completed if you apply for a Loan Modification or file for Bancruptcy at the same time. You may want to wait until the short sale or foreclosure is completed and then file for Bancruptcy.
Q: Do I have to pay my utility bills if the property is vacant?
A: The property owner is responsible for maintaining and securing their property. If your heating gas and electric bills are not getting paid, your property could get severely damaged/ flooded due to frozen and burst pipes in the winter months. We can provide you with referrals to companies that will help you get the property secured and properly winterized in order to prevent damage.
Q: Where will my closing take place?
A: We have over 150 closing locations throughout the state of Illinois.
Q: Do I have to go to the closing?
A: The seller is not required to attend the closing.
Q: How much does it cost to do a Short Sale with Michael Sorensen Team?
A: NOTHING! You will never be asked to pay us any money! Michael Sorensen Team will spend countless hours working for you, without any out of pocket expenses to the seller, regardless if the deal closes or not. We negotiate our fees directly with your lender.
Most common mistakes.
- Don't walk away. Do not abandon your property.
- Do not deed the property to any one else. Consult with your attorney before you transfer the ownership or give somebody else control over your property. Deeding the property to a third party does not necessarily release you from your mortgage obligations.
- Do not give any money upfront to anyone.
- Do not do business with any unlicensed individuals or investors promising to save your house from foreclosure: "Cash offer on your house today" or "We'll buy your house regardless of the condition". Those people have their best interest and maximum profit in mind, not yours!
- Do not accept any low ball offers that are substantially below the property's estimated market value, these will only tie you up the transaction for several months and most likely will be rejected by your lender, and consequently you will end up being foreclosed on, as there will not be enough time left to find other buyers.
- Hire a reputable real estate broker specializing in short sales, to represent you with your best interest in mind, that will guide you through the process.
- Remember, we don't want to buy your property and flip it in order to make a huge profit from it, we just want to help you sell it.
SHORT SALE BUYERS.
BUYING A SHORT SALE PROPERTY. Short Sale approval process depends on the bank's response timeframe and what has been already done prior to the buyer coming in with an offer. It could take 1 day or several months for the bank to respond. The buyer must demonstrate ability to close the deal (provide mortgage pre-approval letter or proof of funds if a cash buyer) and be patient and willing to wait. Short Sales are definitely NOT a good option for buyers that have a specific deadline to move into the property, as there is no specific time frame for the short sale approval nor guarantee that the short sale offer will be ever approved at all. Once the short sale transaction is approved, the closing is scheduled.
Short Sale buyer receives a clean, marketable title at closing and is not responsible for any part of the seller's debt.
SHORT SALE OFFERS. The higher the offer the better your chances of the short sale approval. From my experience, offers within 90% or more of the property's estimated market value, have the highest chance of getting approved by the bank. The lender will order an appraisal or a BPO (broker price opinion) to establish the property's current market value and will compare the offers received to the appraisal.
If you submit a very low offer with no supporting data available to justify it with recently closed comparable properties in the same neighborhood, chances are somebody else will outbid you or your offer will get rejected by the bank.
Tip: Many short sales and bank owned properties are listed at "teaser prices". The purpose is to generate multiple offers in the shortest amount of time possible, create bidding wars among buyers, consequently many of those properties sell substantially above asking prices.
Multiple Offers. The buyer should always assume they will be in multiple offer situation, even if the listing agent will tell you there are no other offers today.
The buyer can make any offer they feel comfortable with, however, if you think it's a good deal, chances are there are other buyers that think so, too, and will be bidding against you. If you want to increase your chances of getting the property, submit an offer slightly above the asking price (most buyers will be bidding below the asking price).
How do I know if it's a good deal? Ask yourself this question: can you find comparable or better properties offered for less in the same area?
Can the bank reject all offers?
Yes. If a short sale listing does not generate acceptable offers, the lender may decide to go ahead and foreclose on the property, and later sell it at the auction or in the open market as a bank owned property. Bank chooses a short sale only if it results in smaller financial loss than foreclosure.
AS-IS Condition.
Short Sales and Bank foreclosed properties are offered in current as-is condition. The buyer is responsible for any/ all inspections and repairs if needed. The buyer has a right to inspect the property at the buyer's expense, but the seller is not obligated to fix any problems or give you any money for the repairs.
For more information on short sales/ foreclosures/ bank owned properties, schedule showings or request a list of available properties, please contact our Top Buyer's Agent:
Karoll Haley - Tel 708-288-8383 (Buyer Specialist)
Warning from the Illinois Association of REALTORS
Avoid "Mortgage Rescue" and "Foreclosure Rescue" Scams.
Illinois Association of REALTORS cautions homeowners facing possible foreclosure to be careful of scams, particularly in Illinois’ larger metropolitan areas.
For a homeowner facing the frightening threat of possible foreclosure, the offer seems too good to be true. A “mortgage rescue” company steps forward, claiming to be able to help you save your credit and your home.
In some cases, the “mortgage rescue” company provides phantom help offering to work as an intermediary with lenders, collecting an up-front fee for services it never provides or that homeowners easily could have done on their own for free.
In other scams, the “mortgage rescuer” may offer to pay off the delinquent loan and allow homeowners to stay on as renters, with the possibility of buying the home back later. But the scam artist doesn’t make the payments and the homeowners, who have signed over their deed, end up losing the home and any equity they had in it.
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 ASC, ABR - RE/MAX CITY
*Disclaimer: Michael Sorensen is not an attorney or a CPA. Information contained herein should not be treated as legal or tax advice.
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