Chicago Short Sales: What is a Short Sale and How Does It Work?

Posted on October 4th, 2010 in Short Selling/Buying.

Chicago IL – I am often asked, “What is a Short Sale and how does it work? Because short sales are a recent phenomenon people don’t really understand them.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

A short sale is when someone is selling their house, but the sale will not bring enough money to pay off their mortgage. Many sellers are experiencing this problem due to the recent drop in home prices.

Here is why a lender will accept a short sale. If you can no longer afford your home, then the lender will have to sell it one way or another.

They would rather have you sell it today versus selling it later after foreclosure. They have learned from experience that a short sale nets them more money.

A foreclosure can take 12-18 months to complete. Many homeowners move out before the foreclosure is complete. The home sits empty for six months, a year, and sometimes even two years.

As a result, many homes have problems with mold, rot, and other repairs. This is why everyone knows that bank owned homes often represent a bargain.

The buyer of a bank owned home often has to make some repairs. New paint, carpet, and miscellaneous items add up fast. In addition, a bank owned home that needs repairs won’t qualify for the most popular financing programs.

As a result, bank owned homes usually sell at a substantial discount. The lenders have realized this after years of processing foreclosures. That is why they approve short sales.

However, they don’t approve every short sale. They have a process in place to reject the short sales that will lose more money than a bank owned sale.

We will submit all the paperwork to the lender and work the file through their short sale process. You simply allow us to show the house and provide us with any needed documentation.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at myrealtorphil@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Remember to visit my Chicago Short Sale blog frequently for great information on short sales www.Chicago-ShortSaleBlog.com

Thinking about a loan modification? Our Chicago Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealtorphil@gmail.com.

View My homes for sale at www.BetterLivingRealty.com.

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do. We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information on What is a Short Sale and how does it work is provided as a courtesy to our viewers to help them make informed decisions.