Do I qualify for a short sale?
Most home owners are late on their mortgage payments by at least 30 days or more
Homes are usually owner-occupied but some are vacant
Single family, condos and town homes qualify
Some investment properties may qualify
Conventional/FHA/VA loans are accepted
I have a 2nd mortgage, can I still qualify for a short sale?
Yes, but it may require additional paperwork and processing to negotiate with the 2nd lender. Contact us for details.
What qualifies as a hardship?
Part of the short sale process includes writing a hardship letter to your lender(s). Hardships include most major life changing events, such as job loss, loss of income, divorce, death of family member, medical disability, illness, and more.
I make too much money. Can I still qualify for a short sale?
The qualifications vary. However, your income level is not the only item taken into consideration. We have successfully negotiated with banks on million dollar properties, with folks who earn well over 6 figures.
I have no equity in my home, can I still short sale?
Yes, this is a very common occurrence, also known as an underwater mortgage. When a regular sale would result in a negative balance, the home owner would have to pay the difference out of pocket. However, with an approved short sale, the bank will accept the current market value for a property and agree to release the remaining balance.
The difference between what is owed and what the bank accepts, am I responsible for that?
Illinois is a judicial foreclosure state and deficiency judgments are allowed. The lender may seek a deficiency judgment as part of the foreclosure lawsuit. The HAFA program eliminates the deficiency judgment when the short sale is approved. Also, home owners should confirm with a certified accountant if taxes are owed on the forgiven amount as income. Very often, the home owner would not need to pay the difference out of pocket.
The short sale process:
The process is complicated but our team is familiar with over 30 banks and how to navigate each one. We will walk you through the process of selling your home with us as a short sale. We’ll list the property and place it on the MLS. When an offer comes in, the negotiation process starts. We will work with you, the homeowner, to gather the qualifying documents your specific lender requires. After submitting the SSOP to the bank, we work on any counter offers and negotiations. It normally takes anywhere from 8 to 12 weeks to get a pre-approval letter from the lender, then another 3-4 weeks to close on the property. During this time, the home owner may look for a rental if they haven’t yet left the property. We also negotiate a closing credit from the lender on behalf of the owner of up to $10,000.
How can I receive $10,000 at closing?
The HAFA program offers owner occupants up to $10,000 to relocate after a short sale closing is successfully completed. Restrictions apply.
Home Affordable Foreclosure Alternatives Program (HAFA)
What fees are involved?
There are no fees for our short sale services. No attorney fees, no title fees, no listing fees. Never a penny out of pocket. The bank will cover all fees.
Does my bankruptcy affect a foreclosure or short sale?
Check with a bankruptcy attorney for the facts. But typically filing for bankruptcy offers a home owner some protection under the law. It will halt all foreclosure proceedings until it has been discharged.
I have a notice of a pending auction date, what do I do?
We work with our clients to halt auction dates. If we have an offer on your property, we can petition the courts to stay the auction date temporarily.
How long does a short sale take to finish?
The average time is 4-6 months, from the date of the received offer.
Will a short sale affect my credit score?
Yes, a short sale will affect your credit score. However, a short sale is seen as less damaging than a foreclosure. It will bring a temporary dip to your score, while a foreclosure will knock off more points and last much longer.
When is the best time to do a short sale?
Our team lists short sales all year long, there is no need to wait for a spring market or a better time to sell.