Miss this first step in a Chicago Short Sale and you risk being ripped off

Posted on September 13th, 2010 in Short Selling/Buying.

Chicago IL – I have feared this for a long time. But today I found out that it is actually happening. Here’s the story. Someone is short selling a house. The mortgage is with ABC Bank. They happen to have their checking or savings account at ABC Bank.

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

They stop paying on their mortgage. They thought their checking account was safe because it is a different account. Then one day their debit card stops working. “Hmm, this is weird. I know I have money in this account. It should be working”, they think to themselves.

They go check their bank account balance and find out it has been sucked dry. Their lender levied their bank accounts to pay the mortgage that month. Their lender levied their bank accounts to pay the mortgage that month. The sad thing is that most people in this situation are close to broke. Having their last bit of savings wiped out is devastating.

Now they don’t even have enough money for gas to get to work. Here is how to avoid having this happen to you. If you get behind on any type of loan, then make sure your checking and savings accounts are with a separate entity.

If you are behind on a car payment, then move your account elsewhere. You want to make sure that your bank is not owned by the same institution. For example, Wells Fargo recently purchased Wachovia.

JP Morgan Chase purchased Washington Mutual. Bank of America purchased Countrywide. Now, some people think this doesn’t matter because these lenders are so big. “Bank of America is huge! They will never notice that I have my checking account with them”, they tell me.

Yes, this is true. They might not notice. Or, I’ve had people make the argument that they aren’t allowed to levy a bank account. Yes, that might be true as well. But do you have time to read through the 20 pages of fine print for when you first opened your checking account? I’m not a lawyer and I would never try to go through all that. It’s much simpler to simply move your account elsewhere.

I also know of a smaller Chicago bank… (anchored in the west loop ) that took $60,000 of my client’s money in a situation similar. He had a business account there and a construction loan. I know this bank and have alerted all clients banking there about this wonderful move by his bank. My client’s out $60,000 cash!!

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 phil@teambrealty.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.

Remember to visit my Chicago short sale blog frequently www.Chicago-ShortSaleBlog.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.

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

Thanks for reading this, Phil Buoscio.

To search for homes visit my website at www.BetterLivingRealty.com