Short Sale Chicago

Avoid Foreclosure. I Can Help.

* WHAT IS A SHORT SALE?

What is a short sale?

A short sale occurs when a lien holder is willing to accept less than the full mortgage pay off.

They “short” the loan pay off in order to allow the homeowner to sell the property. A property is a candidate for a short sale when all liens, plus costs of sale, exceed the market value. These liens include mortgage liens, mechanics liens, tax liens, unpaid judgments, and unpaid Home Owner Association fees.

Why would a lender agree to accept a short sale?

Obviously, a short sale is not a lender’s first choice. However, studies have shown that the cost of a foreclosure to the lender can be as high as $60,000 and take 18 months to complete. Consequently, it may be more cost-effective for the lender to enter into a short sale to minimize the extent of their losses rather than go through the foreclosure process.

What are the steps in a short sale?

There are many steps to successfully complete a short sale. A short sale transaction takes an incredible amount of time, effort, and expertise to negotiate with the lender and get the job done. Some of the typical steps include:

􀂃 Obtain a signed authorization from the seller that allows an intermediary like a realtor to speak with the lender on the seller’s behalf.

􀂃 Obtain mortgage information from the seller.

􀂃 Order a title search on the property to research liens and judgments.

􀂃 Order payoffs to know the exact numbers for the settlement statement.

􀂃 Order an estoppel letter from the Home Owner Association because many times there are back HOA fees due.

􀂃 Establish contact with the lender’s loss mitigation department and order a short sale package.

􀂃 With the seller’s assistance put together the short sale package and submit it to the lender.

􀂃 Provide access for the BPO or appraisal. Provide comps if needed.

􀂃 Assist the seller/buyer in obtaining repair estimates.

􀂃 Assist the buyer in obtaining a mortgage pre-approval before submitting an offer. The borrower’s lender is going to require proof of funds if it’s a cash deal or a commitment letter if there is financing involved.

How long will a short sale take?

Short sales can be very time consuming and require patience from everyone involved: seller, buyers, realtors, and lenders. Approval may take two days to two weeks to two months or more. Some short sales may take as long as four or five months from beginning to end. As of 2008 the average time is 8.1 weeks, according to the National Association of Realtors.

The lien holder(s) has the final say. Remember, the lender is the one who approves the short sale 100% of the time. If there is more than one lender, each one will need to be negotiated with separately.

For more information, and a FREE REPORT please call or e-mail me
Barbara Pedersen
(708) 539-9900

b.pedersen@comcast.net

Realtor®
Short Sale Specialist, Short Sale Listing Agent
Traditional Sales and Purchases
SFR/Short Sale and Foreclousure Resource
Partner First/ServiceLink Preforeclosure Specialist Certified
ADPR/Accredited Distressed Property Representative,
CVP/BPO Certified through NABPOP
NFSTIm RDCPro,Equator, RES.NET, Realty Pilot
HRC, e-PRO, ABR
Classic Realty Group, Orland Park, Il

Visit me on Facebook: Chicago Southwest Suburbs Foreclosure and Short Sale Info
and
on Twitter  ShortSalesIl

Advertisements

August 8, 2010 - Posted by | Short Sales

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: