How A Chicago Short Sale Works

Posted on September 20th, 2010 in Short Selling/Buying.

Chicago IL – A Chicago Short Sale is an option to sell your home when you owe more than it’s worth. You may have bought your home only to see it drop in value. If you want to sell and don’t have enough money to cover the loss, then you need to consider a short sale.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
This is where your lender agrees to take a loss. Obviously, they don’t like to do that. If you have money in savings, they might ask for it. However, federal law forbids them from asking for money in your 401k or IRA.

Here is why lenders will accept a loss thru a short sale. They know that people often have financial problems and the home will have to be foreclosed upon. They have run the numbers and calculated that short sales cut their losses. This is because the home is sold faster. Most foreclosures take 12-18 months, if not longer. It is better to sell the home today versus selling it 12-24 months down the road.

The lenders use several methods to see if a short sale will be better for them financially. They will ask for you to write a letter describing your situation and explaining the hardship that is causing you to sell. This is called a hardship letter. They also also ask for your financial information.

This paperwork is submitted along with a sales contact, HUD-1 settlement statement, and any other documentation needed. The lender will order an appraisal or opinion of value. After they analyze all the information they will approve or deny the short sale request.

In some situations they will ask for more documentation. After the short sale is approved the closing proceeds. The buyer gets an inspection, appraisal, and survey. The final closing settlement statement is submitted to the lender for approval. After the lender approves the sale closes. You are free to move on with your life without a huge debt and without a foreclosure on your record.

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 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 lender. Click here to request a copy.

Thanks for reading this, Phil Buoscio.  And remember to visit my Chicago short sale blog for great tips and information on short selling in Chicago

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

Phone: (312) 953-6725.

View My homes for sale at

Phil Buoscio specializes in loan modifications and short sales in Chicago Illinois. Chicago Loan Modification Help. Chicago Short Sales. Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. 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 how a Chicago Short Sale works is provided as a courtesy to our viewers to help them make informed decisions.