Whether you live in Chicago, Orland Park, Tinley Park, or another suburb, if you are contemplating a short sale, the first is to contact a specialist in Illinois real estate law. We pride ourselves on offering law advice and expertise to those in need. If you are interested in the prospect of a short sale, read on to see how we can help.
What Is a Short Sale?
A short sale is an option to forsake your property as a solution for getting rid of mortgage debt. There are several complications that can arise during the process of a short sale, such as with taxes. Our experienced real estate attorneys can help make the process of a short sale much simpler. No matter if the property is commercial or residential, our real estate expertise can make a short sale simple and easy for all parties involved. We will work diligently with both you and your lenders to ensure that your short sale occurs with minimum risk.
In clear terms, a short sale simply refers to selling your property at a decreased value. Specifically, the money earned on the sale will be less than the amount of money that is currently owed on the balance of the mortgage. Because of this, there is a risk when performing a short sale that you will be forced to pay the difference between the amount the property was sold for and the amount still left on the mortgage. With the help of our expert real estate attorneys, we can work with your lenders and the bank to get you the best deal out of your short sale.
How Does One Go About the Process of a Short Sale?
The reason that people opt for a short sale over a foreclosure is that a short sale will have fewer long-term consequences as far as your credit is concerned. Because of the risk involved, having proper legal counsel is going to be a must if you want the best outcome possible. Experienced real estate attorneys can help guide you through the entire process of a short sale from start to finish, making sure that the whole thing goes off without a hitch. Going about a short sale generally involves these steps:
- Tracking down the real estate agent or another person who is responsible for handling any short sales of your property. They will be responsible for providing you with the details of how to qualify for a short sale. It is advised to have your own realtor on hand.
- Lenders are typically not allowed to use your personal information without your expressed permission. By going through a real estate attorney, your attorney will be able to speak on your behalf and perform all necessary interactions for your short sale.
- Finally, once you’ve sorted everything out, you have to apply for your short sale through the lender. Things that will inform your lender’s decision include your current living situation, your overall income, and the value of your property.
While these steps may seem complicated, having the right legal counsel can make all the difference. With our attorneys on your side, your short sale will be worry and hassle-free.
Things to Know About Short Sales
Here are a few other things to keep in mind about short sales:
- Short sales do not happen overnight. Generally, short sales will take a few months before all is said and done. It all depends on the lender.
- In order for you and your property to qualify for a short sale, you will need to be able to prove some recent financial hardship. With the help of our experienced real estate counsel, we can figure out if a short sale is right for you. As well, we’ll show you how best to present yourself to the banks in order to qualify.
- Your lender will need to approve of any offer. As well, the bank will have to approve of the sale in order for it to go through. The bank will order a BPO, or broker’s price opinion, which is a form of real estate appraisal. This means that if the offer for the short sale is significantly lower than what other properties have sold for, the offer might not be approved by the bank.
- It is important that you get proper legal counsel as soon as possible. It is imperative that your counsel is involved in every step of the way to guarantee no complications arise. We will work closely with every party involved to ensure the best outcome for our clients.
Do Short Sales Cause Tax Problems?
There is a risk for there to be some tax consequences involved in your short sale. This is another reason why it is important for you to have experienced real estate attorneys on your side. There are a barrage of tax laws that can play into the situation. Having a team that knows how to sort through them guarantees you the best monetary outcome.
Why Not Allow the Property to Go Into Foreclosure?
As we’ve already discussed, the main reason to opt for a short sale over a foreclosure is that a short sale runs you less credit risk in the long-run.
There are a few other reasons, as well. For one thing, short sales are over-and-done with much faster than foreclosures. Foreclosure can take several years, and you are still indebted to the property during the entire process.
Until the foreclosure is finalized, you are still fully liable as the owner of the property. With a short sale, the process occurs a lot faster, meaning you won’t be held accountable for the property for as long. This can save you a lot of time and hassle, alleviates the risk of further complications, and allows you to move on from this situation much sooner.
Do Short Sales Affect My Ability to Buy Property Afterwards?
No, a short sale will not stain your record. Those who go through the process of a short sale will see minimal impact on their ability to procure loans for future properties. The same cannot be said if you allow your property to go into foreclosure.
Contact Us Today for a Free Consultation!
If you have been having trouble making your mortgage payments, or simply haven’t been making payments at all, contact us ASAP! The faster we get involved in the situation, the more likely you will get out of your mortgage without any complications! We will provide a free consultation to see what our team can do for you. With our help, you’ll be able to get out of this mess financially sound and ready for the future!