What is a short sale?
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.
View current short sales in Chicago below
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 basics, the pros and cons of the short sale process.”
Pro: Buyers get property for less
As a buyer, you may get the property 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.
According to Ted and his years of short sale experience, he says:
- Fannie Mae and Freddie Mac will accept 85 to 90 percent of the fair market values in a short sale
- 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
Pro: Homeowner avoids foreclosure
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 completed 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.
Con: The extended closing timeline
If buying a short sale property, a buyer must be aware that short sales take a much longer time to close than a standard sale. According to Ted Guarnero, an expert in short sales the last 25 years, “you are probably looking at a few weeks to a few months to even hear back about the acceptance of your offer, then a few more months between offer acceptance and closing.”
Con: You must deal directly with a bank or mortgage lender
Dealing with the bank or mortgage lender is much different than 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 billion dollar organizations; they do not have to sell the property
- Even if you offer the homeowner and bank full short sale price, the bank may still reject your offer for a variety of reasons
- 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 buyer needs to compile paperwork to prove to the lender that the homeowner qualifies for a short sale payoff.
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 can save prospective buyers a lot of aggravation, time and money. Whether you go it alone, or seek professional help, Ted says you will need to present the following to a lender for any short sale:
- Cover letter
- 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
Obviously, this is a lot of work. This is why it is important now more than ever that you hire a real estate agent who is familiar with short sales and the complexity of them.
Current Short Sales In Chicago
222 Search Results Found. Showing Results 1 - 8.
"SHORT SALE - SUBJECT TO LENDER'S APPROVAL, SOLD-AS-IS". 1-BR/1-BA SPACIOUS UNIT OVERLOOKING...
Seller sad to lose terrific condo but their loss is your gain. Seller has turned in all the...
GREAT PRICE AND A BETTER INVESTMENT! 1-BR/1-BA CONDO IN HOT SOUTH LOOP W/660 SQFT. CLOSE TO...
Pursuant to Short Sale. Remarkable River City. Landmark building in a GREAT location includes...
WHAT A VIEW!!! TWO BEDROOM TWO AND HALF BATHROOM DUPLEX WITH A BEAUTIFUL VIEW OF MARINA. MUST...
SHORT SALE. SOLD AS IS CONDITION. ALL OFFERS MUST HAVE PRE APPROVAL AND ARE SUBJECT TO LENDERS...
Pursuant to Short Sale. Remarkable River City. Landmark building in a GREAT location includes...
SHORT SALE! STUIDO WITH PRIVATE BALCANY THIS DOWNTOWN CHICAGO LANDMARK BUILDING HAS A BALLY'S...
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.
Did you know?
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.
My Account
Log in, to view your saved searches and add to your favorite listings.
... So You Can:
- View detailed property information
- Print detailed property flyers
- Save your searches & favorite homes
- Inquire about a private showing
- Map individual property locations
- Share your favorite homes with friends
Search By
Contact UsTed's Top picks
- Haberdasher Square
- The Elysees
- 1000 W Adams
- River East
- Pearson on the Park
- The Edge
- 1000 W Washington
- Park Alexandria
- 333 Des Plaines
- The Columbian
- Gold Gold Galleria
- John Hancock
Chicago Neighborhoods
- Andersonville
- Bronzeville
- Bucktown
- Downtown Chicago
- Central Station
- Dearborn Park
- The Gap
- Gold Coast
- Hyde Park
- Kingsbury Park
- Lakeview
- Lincoln Park
- Lincoln Square
- The Loop
- Near North Side
- New East Side
- Old Town
- Old Town Triangle
- Printers Row
- River North
- River West
- South Loop
- South Shore
- Kingsbury Park
- Streeterville
- West Loop
- West Town
- Wicker Park
- Wrigleyville
Chicago Suburbs
- Burr Ridge
- Brookfield
- Downers Grove
- Evanston
- Frankfort
- Highland Park
- Lagrange
- Lagrange Park
- Naperville
- Oak Park
- Plainfield
- Western Springs
Real Time Market Information
Recent Blog Posts
