Short Sales-Frequently asked Questions
Q & A Short sales: Some facts about Short Sales in Illinois
What is a Short Sale?
A short sale is when a homeowner is "short" when the amount owed on his/her property is higher than current market value.
When does a Short Sale occur?
Smart question! A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then "sold short" of the total value of the mortgage.
Are there homeowners qualifications to preform a short sale?
For a short sale to occur, the homeowners must qualify into any or all of the following circumstances:
- Financial Hardship - There is a situation causing you to have some trouble affording youur mortgage. Death of a spouse, unemployment, illness are three good examples.
- Monthly Income Shortfall - A lender will want to see that you cannot afford or soon will not be able to afford the existing mortgage. The lender and you should consider if a modification of the terms of your loan is possible.
- Insolvency - The lender will want to see that you do not have the significant liquid assets that would allow you to pay down your mortgage.
This is a complicated process that takes the expertise of experianced professionals. I hold the CDPE designation and am ready to identify all possible options and, when possible, assist in the quick execution of the short sale transaction. I believe I have the resources to help "clear the fog" by having you research your options with other professionals, that is an attorney experianced with negotiating in your interest, as well as tax accountants.
If you have any questons or feel you may qualify for a short sale, please contact me for a free consultation. Understanding your options now could mean all the difference in the world.