Have you missed several mortgage payments?
Do you get annoying calls from the mortgage company?
Are you ready to give up and just lose your house in Chicago and suburbs?
This is a common situation is common in Chicago Real Estate Market and all across US!
While in the past it was easy to obtain a mortgage or home equity loans and property values were sky rocketing it was an opening to financial crisis and came into existence
After a period of time when many people were upside down in their properties the market started to recover; However there are still people that owe on the property more that its value.
There are still people who cannot afford to make their mortgage payments due to different situations. For these people foreclosure is a real threat and they are close than ever to lose their home.
Even though Chicago’s real estate market has changed in recent years, banks are still offering different options to people that have financial hardships. This situation benefits the banks as they can face smaller loses if they work with homeowners. Banks try to avoid foreclosures due to legal, maintenance, repair and marketing costs.
The most common option that is offered is a short sale.
In case of short sale the bank allows you to sell the property quickly for lower price then you owe on your mortgage. For example you owe $200,000, but because of market conditions properties in your area are selling for $175,000. You can ask for $175,000 or lower to sell the house.
Your lender is going to take a loss because not the full amount will be recovered in the sale, but the lender benefits as they don’t have to keep the property and trying to sell it. As a home owner you just get rid of the debt and the property.
It is highly recommended to hire a real estate agent who works with experienced short sale attorney that will help you to complete a successful process. The attorney and your agent will provide you with the right guidance and paperwork you need. The major benefit for you here that as a seller you are not paying for anything since all expenses are paid by the bank included attorney fees and real estate fees.
As good as short sale sounds it has its own consequences. It will impact your credit score about 80 points. While its sound a lot foreclosure can lower your score 200+ points down.
Short sale will also limit your ability to buy a house in the next two years, with foreclosure it might me much longer.
Of course, after all the best solution is to become current on your mortgage payments, however if it is impossible; seriously consider a short sale before it is too late.
Always remember the bank is not your enemy be honest with your situation and ask to talk to the right person or department usually called loss mitigation there are trained people that always ready to help.
Always consult attorney, tax professional and real estate agent for your situation.
Keep positive attitude, be strong, and Good Luck!
For more info fill out the contact form.