Frequently Asked Questions
What if I have several mortgages on my property?
Most people looking to short sell do have multiple mortgages on their property. In these situations, we negotiate with each lender that is “shorted”. A short sale transaction with more than one lender can be more complicated depending on many factors such as your current property value, offer price, and loan balances.
How much time does a short sale take?
A short sale can take approximately 90 – 120 days from the day you accept a contract to the time your property closes. There is much paperwork involved and negotiating which each lender takes time.
What if I have already filed bankruptcy?
In many cases, if you have filed bankruptcy you still SHOULD do a short sale. The last think you want on credit is both a bankruptcy and a foreclosure. Bankruptcy may eliminate your debt and liabilities but it will not ultimatly stop foreclosure. It is easiest to complete a short sale transaction just before filing bankruptcy or just after the bankrupcty is completed. However, you can still do a short sale while under bankruptcy protection, there is just more paperwork involved and the process might take a bit longer to complete.
What about property taxes I did not pay?
Unpaid property taxes get paid at closing by the lender since title has to be free and clear when transferred to a new buyer.
Are all short sales accepted?
If the lender believes they will net more money for your property through a short sale vs. taking the property back via foreclosure, then they will most likely accept the offer. Many lenders are encouraging short sales today for various reasons. It is usually in the lenders best interest to accept a short sale instead of taking the property through foreclosure.
How much does this cost?
It costs you nothing. When conducting a short sale all of the typical transaction costs are assumed by your lender. These include property taxes, title costs, attorney fees, back assessments, and the commissions we are paid. On rare occastion, if you are just short of reaching the lender’s requested net amount you might have to make a small cash contribution to make up the difference. If you use the right representation you shoud avoid that.
How Do I Start A Short Sale?
To initiate a sort sale, you must submit a detailed short sale package to your lender(s) along with an accepted purchase contract. It is important to position your property correctly in order to procure a buyer in a timely manner, and once you have an accepted purchase contract it is imperative to submit all the proper documentation in the short sale package.
As a short sale specialist, I walk each of my clients through the steps in the short sale process. First we market and position your property to find a purchaser at a discounted price. Next we take the time to ensure the short sale package is properly submitted. While all of this is happening, we simultaneously negotiate with your lender(s) to accept a discounted loan payoff.
Selling your property through a short sale requires three times the amount of work as a traditional sale, and over 90% of the real estate professionals in the Chciagoland area do not know how to properly execute a short sale. I have partnered with one of the most prominent short sale teams in the Chicagoland area to handle every aspect of the short sale process.