5 Tips for Choosing the Best Real Estate AgentRead More
Find up-to-date Chicago short sale homes for sale below. 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. Searching for more information on short sale properties for sale in Chicago? Arrange for a private showing by contacting your local real estate experts today! Read more about Chicago short sales.
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 this 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 real estate agents that have years of direct experience dealing with short sales.
Ted Guarnero has years of experience with short sales; according to Ted: "many potential buyers are attracted to short sales because 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 cannot be duplicated, don't fall in love with it!
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 a home again and being a life-long 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.
To learn more about Chicago foreclosures and to view foreclosures for sale in Chicago, click here.
Pro: Buyers Often Get Property For Less
As a buyer, you may get a 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.
Con: Closing Can Take Longer
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 2-6 months before closing. According to Ted Guarnero, an expert in short sales, "you are probably looking at 6-8 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/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:
Con: Short Sales Can Require More Work For You
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, it's important to work 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:
Obviously, this is a lot of work involved. This is why it's 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.
Because short sales are more complicated than regular sales, it is imperative that you choose an agent to represent you who has experience in short sales. Contact 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.
Considering the purchase of a Chicago short sale? Allow our real estate team to help you through the purchase of your new short sale property or the sale of your current residence. As local real estate agents, we have insider knowledge of the dynamics unique to Chicago short sales.
Contact the Seventy7 Group at Fulton Grace to get more information about buyer or seller representation. Looking to sell your home through a short sale? Connect with us for a free property evaluation in Chicago within moments!