We will attempt to answer the question: what is a short sale, by addressing the 5 W’s: Who, What, Where, When, and Why and how it they relate to short sales.
Anyone can do a short sale as long as they meet some basic guidelines. You must experience a hardship (a good example is job loss but also any increase in expenses can be used), you must owe the bank or banks more than the home is worth, and you must be behind on the mortgage payments. If you are a homeowner who can no longer afford the payments you should contact us today to learn more about your options.
What is Short Sale ? The basic answer to what is short sale is that a short sale occurs when a property sells for less than the balance that is owed on its mortgage and instead of the homeowner bringing cash to the table to make up the difference, the bank accepts less than what is owed as full payment. A short sale can be completed on a single family home, a condominium, a multi-unit apartment building or even vacant land. If there is a mortgage balance that is greater than the market value of the home, that property can be sold using the short sale strategy.
Short sales can take place anywhere. As stated above they can be completed on properties that are single family homes, condominiums, multi-unit apartment buildings or even vacant land. Short sales are occurring all over Illinois, Chicago, and the Chicagoland area. In every city in Illinois there are short sales. The team at Short Sales Chicago serves all of Chicago and Chicagoland. From the southern suburbs to the Wisconsin border you can count on Short Sales Chicago to help you with your short sale.
A short sale can occur anytime after a homeowner misses a payment. Once you miss one payment, the home is short sale eligible. The Short Sales Chicago team can assist you with timing on your short sale. If you are even considering a short sale or wondering if a short sale may be right for you it is best to speak with someone from our team ASAP as they can guide you regarding the timing of your sale and help in every step of the way.
Why do a short sale ? What are the benefits of a short sale ? There are many reasons why people do short sales. A few common are listed below. One major reason is that they can no longer afford their payments. The payments may increase or other expenses (like childcare) can increase or there can be a loss of income or the homeowner might just have never been able to afford the home in the first place. A second reason is that the homeowner needs to move and is unable to sell their home for what is owed. A third reason is that the homeowner owes so much more than the home is worth that they will have to stay in the property for fifteen or twenty years just to break even. Once they realize this they see a short sale as an opportunity to get out of an underwater home. We helped a homeowner in a Chicago suburb sell their home for $164,000 when they owed $279,000. If property values increase by 2% per year they would have had to stay in their home for almost 30 years just to break even !!