Well, the most banks lose money when they reject a short sale. They turn down a sales price of $200,000. They foreclose on the home and put it up for sale.
However, they are not able to get the price they want. The home ends up selling for $150,000. What does that mean to you?
First, you probably owe them a lot of money. They may have been losing money on the original short sale. But, now they lost another $50,000. They will probably ask you to repay them for their loss.
Many people are shocked to learn that they are stuck owing tens of thousands of dollars to their bank. A short sale can help reduce the amount you owe. I’ll explain how.
First, most short sales result in the bank forgiving you on the debt. We have seen banks lose hundreds of thousands of dollars and still forgive the debt.
I estimate that over 80% of short sales result in the homeowner result in the debt being forgiven. Contrast this with a foreclosure. In most cases, the bank can chase you down for the money for 7-20 years.
Here is the second way that a short sale can reduce the amount you owe. Most short sales result in the bank result in reduced losses to the bank. I’m sure you are wondering why.
First off, the home usually sells for more money as a short sale than it would as a foreclosure. We have seen $385,000 short sale offers get turned down, only to result in the home selling after foreclosure for $230,000. That’s a huge loss!
Second, a short sale costs the bank less money in property taxes, homeowner’s insurance, lost interest income, etc. Overall, the costs are much less. All these costs add up fast. Thinking about a short sale? Chicago short sales can be difficult. Use an expert like Short Sale Super Man to guide you through the process. Visit www.ShortSaleSuperMan.com There you can learn about short selling vs renting. How Chicago lenders are dealing with short sales.
I can help you short sale your property and get back on your feet. Send me an e-mail at email@example.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.
Thinking about a loan modification? Our Chicago loan modification kit has the instructions you will need to get a loan modification approved with your bank. 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.. Chicago Short Sales Realtor:
Phone: (312) 953-6725. firstname.lastname@example.org.
View My homes for sale at www.BetterLivingRealty.com. Or visit Chicago’s short sale expert at www.ShortSaleSuperMan.com
Phil Buoscio specializes in loan modifications and short sales in Chicago Illinois. Chicago Loan Modification Help. Chicago Short Sales. Chicago Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor.
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Phil Buoscio, Better Living Realty – Buoscio Brokerage, Inc., and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
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.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Phil’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc..
This information on How A Chicago Short Sale Could Help You Avoid Owing Money In The Future is provided as a courtesy to our viewers to help them make informed decisions.