Chicago Short Sales Information
Short Sales in Chicago
Short sales in Chicago and undestanding what they are is the first step to a smooth buying process. By definition a short sale is when a property is for sale for less than what is owed on the property. The bank or mortgage lender agrees to discount a mortgage loan usually in order to avoid the lengthy and expensive foreclosure process.
Short Sale Advantages
Pro: Buyers get property for less ( not always )
As a buyer, you may get the property in Chicago for less than market value, or at least for a lower price than found in the neighborhood on similar properties. The bank or mortgage lender will typically determine the property’s worth from a Broker Price Opinion BPO or through an independent appraisal.
Current Short Sales In Chicago
2 Bedroom Single Family Home Property in Bellwood, IL
- Price:
- $24,900
- City:
- Bellwood
- Beds:
- 2
- Baths:
- 2
- Type:
- Single Family Home
- MLS® #:
- 08005141
- Provider:
-
Short Sale - Frame, Basement, Great Location
- Price:
- $39,900
- City:
- Chicago
- Baths:
- 1
- Type:
- Condominium
- MLS® #:
- 08053070
- Provider:
-
This Beautifully Appointed Vintage Studio In Historic Buena Park Has A Great Eastern View Out Of ...
- Price:
- $40,000
- City:
- Chicago
- Baths:
- 1
- Type:
- Condominium
- MLS® #:
- 08062168
- Provider:
-
Adorable, Sunny Top Floor Studio Features Hardwood Floors Throughout, 42" Maple Cabinets, Walk In...
- Price:
- $44,000
- City:
- Chicago
- Baths:
- 1
- Type:
- Condominium
- MLS® #:
- 07962292
- Provider:
-
Priced To Sell! Vintage Building. Junior 1 Bedroom. Hardwood Floors Throughout. 42' Maple Cabine...
- Price:
- $45,000
- City:
- Chicago
- Baths:
- 1
- Type:
- Condominium
- MLS® #:
- 07897701
- Provider:
-
Great Short Sale Opportunity! Gorgeous Studio With Seperate Living And Dining Areas. Stainless St...
- Price:
- $55,000
- City:
- Chicago
- Baths:
- 1
- Type:
- Condominium
- MLS® #:
- 08026234
- Provider:
-
Short Sale. Best Studio In Beautiful Art Deco Building. Great Buena Park Location! Walnut Stained...
- Price:
- $65,000
- City:
- Chicago
- Baths:
- 1
- Type:
- Condominium
- MLS® #:
- 08017239
- Provider:
-
Adorable Studio In Buena Park. Bay Window In Living Room With Beautiful Views Of Lake, Park & Cit...
1 Bedroom Condominium Property in Chicago, IL
- Price:
- $68,000
- City:
- Chicago
- Beds:
- 1
- Baths:
- 1
- Type:
- Condominium
- MLS® #:
- 07986014
- Provider:
-
Ted Guarnero has years of experience with short sales; according to Ted, “many potential buyers are attracted to short sales since they are priced under market value, but short sales are not for everybody. I complete a full short sale package for all of my short sale prospects before moving forward. Below is hopefully the very basic information, the pros and cons of the short sale process.”
NOTE : YOU ARE NOT GOING TO STEAL A SHORT SALE IN CHICAGO. So, unless it's a home that has some great features that can not be duplicated, don't fall in love with it !
Ted Guarnero Has Years of Short Sale Experience in Chicago
- Fannie Mae and Freddie Mac will accept 85 to 90 percent of the fair market values in a short sale of the BPO
- HUD will accept as low as 82 percent in a short sale situation
- The seller of the property can in no way profit from a short sale
- These numbers include back taxes and closing cost that the bank will have to pay
Avoid Foreclosure in Chicago
For the home owner and seller of property, a short sale will avoid foreclosure. The negative impact on their credit history can be the difference of owning another home again and being a lifelong renter. It must be mentioned that unless the remaining balance is indicated on an acceptance offer as extinguished, the homeowner may still owe the short money on the transaction. Although a short sale is faster than a foreclosure, it will still take a considerably longer time to complete than a regular home sale since a buyer is not negotiating with the home seller, but rather the loss mitigation department of the lender.
Disadvantages to a Short Sale in Chicago
Con: The extended closing timeline
If buying a short sale property in Chicago, a buyer must be aware that short sales take a much longer time to close than a standard sale, and the buyer should be prepared for 2 to 6 months before closing. According to Ted Guarnero, an expert in short sales, “you are probably looking at 6 to 8 weeks to even hear back about the acceptance of your offer, then a few more months between offer acceptance and closing.” Adding a second mortgage will delay this process as well.
Con: dealing directly with a bank or mortgage lender
Dealing with the bank or mortgage lender is considerably different to dealing with a homeowner. Some of the differences that individuals must account for when dealing with a bank as a short seller are:
- There is NO urgency/need for the bank to sell the property—Banks are often over loaded with offers - Not all are a resonable
- Even if you offer the homeowner and bank full short sale price, the bank may still may still reject your offer for a variety of reasons. The biggest one is the listing agent was not experienced and may have listing to home without knowing if the seeler was quilified to do a short sale on their home.
- The owner is the one that must accept or deny the offer to purchase first ( NOT the bank )
- The bank accepting the short sale is contingent with the seller NOT THE BUYER.
- Once you submit an offer, you are locked into that price and contract. In today’s real estate market with sliding prices, if the bank takes several months to respond to your offer, you may be paying more than current market value.
Con: Short sales can require more work on the part of the buyer who must also qualify for the transaction
To make a case for the short sale, the seller needs to compile paperwork to prove to the lender that the homeowner qualifies for a short sale. Since the average layperson is not familiar with the many nuances and legalities of most real estate transactions, including short sales, working with a Realtor® like Ted Guarnero who specializes in this area and can save prospective buyers a lot of aggravation, time and money. Ted says you will need to present the following to a lender for any short sale approval.
- Purchase agreement
- List of repairs with bid quotes
- Photos of problems
- Seller’s hardship letter
- HUD-1 Net Sheet
- Sellers Financial Information—tax returns, etc.
- Your formal offer with a time limit for acceptance
- This is only a small part of the list and we can show you everything that is needed
Obviously, this is a lot of work involved. This is why it is important now more than ever that you hire a real estate agent and an attorney who is familiar with short sales and the complexity of them.
Facts You May Not Know Regarding Short Sales in Chicago
Short sales are the largest growing segment of real estate sales within the last two years. When buying a short sale, you may have to not only try to satisfy the original mortgage lender, but any secondary liens as well. Multiple levels of approvals and conditions are very common with short sales. Junior liens - such as second mortgages, home equity lenders, and HOA (special assessment liens) - may need to approve type of real estate transaction which is why unfortunately short sale deals have a high failure rate and often do not close on time to save homeowners from foreclosure when they are not handled by a knowledgeable and experienced professional. The best sources of knowledge and expertise in short sales are short sale negotiators, loss mitigation are realtors that have years of direct experience dealing with short sales.
Because short sales are more complicated than regular sales, it is imperative that you choose a Realtor to represent you who has experience in short sales. Call Ted Guarnero for a list of short sale properties.Let Ted’s 25 years of experience handle negotiations for you, and make sure that your best interests are protected throughout what can be a complicated process.
The data relating to real estate for sale on this website comes in part from the Broker Reciprocity program of Midwest Real Estate Data LLC. Real Estate listings held by brokerage firms other than Baird & Warner are marked with the Broker Reciprocity logo or the Broker Reciprocity thumbnail logo (a little black house) and detailed information about them includes the names of the listing brokers. Some properties which appear for sale on this website may subsequently have sold and may no longer be available. The information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information deemed reliable but not guaranteed.
Copyright © 2012 Midwest Real Estate Data LLC
Listing information last updated on May 21st, 2012 at 2:00am.