Buying short sale property

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Buying a short sale property is a highly attractive option for those who are trying to buy real estate property. The main reason is because they will be receiving a piece of property below market value. Using this method, you may potentially expect to get better value for your money.

When we state short sale, this might refer to any property that is being sold for any price lower than its market value or loan price. Therefore in order to be certain that you will get the best offer whenever you buying a short sale property, you’ll need an expert who is able to determine the actual value of the property.

This is where a real estate agent comes in. They will determine the actual worth of the property. They will help ensure that you don’t spend more money than a property is worth. Therefore, working with an experience short sale real agent is very important.

Here are a few tips that you can follow to buying short sale property:
Inspect the property. You might not get a chance to schedule a comprehensive home inspection before buying so, If possible, take along an expert when you first view the home to help you determine the true value of the property.  The expert might also help identify any hidden problems such as roof damage, damages to the floor of the home, leaky pipes, water damage, broken heaters and etc.

Purchase title insurance. Make sure to buy title insurance before purchasing a short sale property. A title insurance company will research the property to uncover any judgment liens, back taxes, or other debts on the property.  This will protect you against any unknown liens on the property that you are buying.

A short sale is a pre-foreclosure transaction in which a lender agrees to allow the sale of a home for less than the amount owed on the mortgage. Across the United States, including Chicago, a short sale helps prevent a property from being foreclosure upon if the lender will allow it. A short sale can benefit the homeowner as well as the lender. The lender can avoid the lengthy process of a foreclosure and the expense that goes along with it.  And the owner is allow to get out of a mortgage that they can’t afford to pay.  While the purchaser gets a good deal on a distressed property.

How to find short sale properties

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A short sale is when a lender agrees to let the home-owner to sell their house for less than they owe on the property. Unlike foreclosure sales, these properties don’t have to be in foreclosure to be listed as a short sale. Oftentimes, the lender and the homeowner see this as a win-win situation. Lenders can make up to 20% more on a short sale than on a foreclosure that has gone up for auction. Also, they can get the property off their books.

How to find short sale Properties

There are a few really good options when searching for a short sale listing.  The Multiple Listing System (MLS) is available to you and your real estate agent.  Local newspapers often have special sections for short sales. You can also do some research and find a real estate agent that specializes in short sale properties.

Real Estate Agents

There are several different ways to find a real estate agent that specializes in short sales.

•    Go to your bank and ask for a list of realtors they recommend when dealing with short sale properties.
•    Search the internet for experienced short sale realtors
•    Ask for recommendations from family and friends. In today’s housing market, they’re likely to know someone who has bought a short sale home and can lead you in the right directions.

Multiple Listing System

The Multiple Listing System (MLS) is a good way to find the homes you’re looking for. Some companies offer to send you a list based on the area you’re looking in, but these are often limited and don’t have the comprehensive information you need. For the best results find a real estate agent and ask them to prepare a short sale report for you.

•    Be sure you tell them you want a comprehensive report. This is important because often the reports are different depending on your location or the location you’re moving to.
•    Specify your criteria to get the most accurate results, but be aware that too much detail in the request can limit your options and cause you to miss great homes.
•    There are times when a realtor doesn’t want to handle a short sale because it generates a lower commission for them. However, they can’t refuse your request as they are legally obligated to provide you with the information.

Searching for Short Sales on Your Own

Searching for Short Sales yourself can be a time consuming, but rewarding way to purchase a home. There are a few different places to look.

•    Check the real estate ads in your local newspaper for short sale listings
•    Find court listings for “pre-foreclosure” online or by going to the local county clerk’s office and requesting one
•    Contact a realtor and ask to be put on a notification list. When they receive a short sale listing, they will email the information to you.

When looking for a short sale home, it’s important to take your time and make sure you’re getting the most value for your money. Find a good realtor, be diligent in your search, and you’ll get a great deal on a home.

Mortgage Settlement

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Many shore sale experts are predicting that we will be seeing a lot of Chicago foreclosures in 2012. Even with the recent $26 billion mortgage settlement, it will only now accelerate foreclosure filings.  Last year we witnessed a drop in foreclosure filings because of the negotiations.  Many expert predict that in 2012, nationally, we will see as many as 2.2 to 2.5 million new foreclosure filings.

The new mortgage settlement will help those who can afford to pay their mortgages given they are given some adjustments.  But for those who simply cannot afford it because of lost of employment or some other severe economic distress, it will finally convince them to file for foreclosure because there are no other options.

While the mortgage settlement was being negotiated, many banks allowed delinquent loans to sit in limbo.  Now that the settlement has been reached, lenders can start moving on these delinquent loans.  Home owners will now be forced to consider short sales or lose their property through foreclosure.

That means that the Chicago short sale industry will see a huge up rise in activity.

Pre-approved short sale

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This luxurious 2 bedroom and 2 bath pre-approved Chicago short sale condo is located at 1924-2 W Diversey Ave, Unit 2W.  With over 1200 square foot of space, this all brick condo has a open layout with a large kitchen.

The shore sale property has dark Brazilian cherry hardwood floors.  The master has walk-in closets and a stone spa style shower with bench and body spray.

There is a huge deck off the master bedroom and a two car tandem parking space.   The property is listed at $260,000.  If you like to talk to us about this short sale opportunity please call us at (312) 755-9999.

 

West Loop Short Sale Opportunity

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There is currently a great short sale opportunity on a condo in the West Loop area.  The condo has two bedroom and two bath.

The property has a open gourmet maple and granite kitchen.

The jewel of this condo is the huge private sun with amazing views.

The property’s listing price is $149,000.00.  If you like more information on this shore sale opportunity please contact us at (312) 755-9999.

Mortgage forbearance help

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Fannie Mae and Freddie Mac, have revised their forbearance policy when someone losses their job and it may affect their ability to stay current with their home loan.  Mortgage forbearance means that the lender will suspend or reduce the required monthly payments due on a mortgage loan for a specified period of time.

Now, those handling your loan can grant you a six month reduction or suspension of your loan payments without permission.  If unemployment continues beyond the six months then they can grant you an additional six months if they believe it is warranted and Fannie or Freddie approves.  While one is under the forbearance period, you cannot be subject to foreclosure even if you fell behind in your payments before the forbearance period began.

However, forbearance does not mean forgiveness.  It just means a temporary suspension of your loan.  You still need to figure out how to pay back the amount suspended when the loan resumes.  For example, say your monthly amount is $2,000.00.  You lose your job and it takes you 4 months to find a new job.  During the 4 months your loan was in forbearance, $8,000.00 is owed.  Once the forbearance period ends, you resume paying the $2,000.00 a month.  You then need to work out a deal to pay the $8,000.00 that accumulated during forbearance.  So you work out a deal to pay the $8,000.00 at the rate of $500.00 a month.  Your mortgage payment now increases to $2,500.00 a month and will return to $2,000.00 when the $8,000.00 is paid off.

These new policies will go into effect on March 1, 2012 for Fannie Mae and February 1, 2012 for Freddie Mac.  It should be noted that to quality, the loan must be on your primary residence and that you prove financial hardship (i.e. loss of a job).  If your other spouse makes enough money to pay for the loan then its unlike you will be granted the life.  So the borrower’s monthly housing expenses must be more than 31% of their monthly gross income excluding unemployment benefits.

It should be interesting to see how many people these new rules will help and if it will have any effect on the short sale and foreclosure markets at all.

Understanding foreclosure process

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In very simple terms, here is how the foreclosure process works.  You have a homeowner who has not made mortgage payments for a few months.  After about four to six months, the lender will order a trustee to record a Notice of Default with the local county recorder’s office.   This points the homeowner on notice that they are facing foreclosure.   If the loan is not brought current, within three months then a foreclosure sale is scheduled.  A Notice of Sell is posted on the property and recorded with the county recorder’s office in the county the property is located in.

If the loan is still not brought current, then the foreclosure trustee sale occurs in a Chicago court, in the county the property is located in.  The property will then be auctioned to the highest bidder.  The winning buyer get a Trustee Deed, which must be recorded in Chicago, giving him or her title to the property.

If you purchase a foreclosed property and the previous owner is still living on the property then you have to evict the prior owner for the Chicago eviction process.  If the property is occupied by a tenant of the previous owner then you will also need to evict them but they are getting a longer notice period before you can file your eviction lawsuit.

As you can see the entire foreclosure process is not pleasant and is not kind to your credit record so many people look to a Chicago Short Sale as a way to avoid foreclosure.

Short sale explained

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In a nutshell, a Short Sale in Real Estate occurs when the sales price of the home is NOT high enough to cover the Liens (mortgages) and closing costs.  When this happens, a seller only has two options: The first is to come to the closing with a Check and the second is to Short Sell the home.

As you can imagine, there has been a growth in the industry that deal in Short Sales and like any other segment of society this can be divided into reputable and predatory. When you are in the situation of needing to Short Sell your home it is easy to think that every one is a predator.

There are people that can help you:  Whether you have never missed a single payment or you have missed many payments, people that have the ability to process your Chicago Short Sale quickly and successfully.  The main key is to seek help sooner rather than later as the earlier you seek help, the better the success rate.

A short sale is one of the best ways to avoid foreclosure! It is a very common occurrence that in today’s depressed real estate market; that home sellers will receive offers that are less than the amount owed to the lender. A short sale takes place is when a bank is willing to sell for less than what is owed. You are looking for a Real Estate Agent that Specializes in representing the sellers in Chicago Short Sale Transaction,

If you want to avoid foreclosure and keep your home, your first step is to buy some time by calling your lender! If you are having any difficulty paying your mortgage, it is always very important to act swiftly before things get so bad that you do face a foreclosure.  In a situation where you want to sell your house, but it is at risk for foreclosure, your best option is short sale.

Chicago Short Sale’s are a bit different from other markets you may be familiar with and understand better. Chicago, like any big city, is full of pocket areas that can make a house on one street much more desirable than one that is a couple of blocks away. If you go to the South Shore area you will find some blocks that are very disirable and right next to them them you will find blocks where the neighborhood has degenerated into an urban war zone. That’s why knowing Chicago neighborhoods is important when doing short sales. If you are buying don’t just pre veiw the property on a Wednesday afternoon but take a couple of drives through it at the weekend or in the evening that you get a better feel for what the neighborhood is realy like.

A real estate agent is a person involved in assisting with your Chicago Short Sale and purchase of any property. Short sale realtors are specialists that will work in your interest and try to get you the best deal. They are also dealing with people in your situation all the time and for that reason are in a good place to advise you informally on your general finacial situation.

What is a short sale?

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A short sale is when the seller’s mortgage lender agrees to accept a payoff of less than the amount due on the loan.  The situation is available when you have a homeowner who can no longer afford to keep up with their mortgage payments.  Rather than filing for bankruptcy or getting their property foreclosed upon, both of which will ruin their credit and have to endure public and family embarrassment, the homeowner looks for someone to take over their loan with the mortgage lender’s approval.

To get the process started, its best to contact a short sale agent who specializes in the area.  You might also want to talk to your accountant and a lawyer as well.  There will be tax consequences that you will have to absorb by getting out for the debt.

Hello!

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You have arrived at Chicago Short Sale.  This is a blog about everything you need to know about purchasing short sale properties and methods to get out of your mortgage loan.  The benefits and pitfalls of buying a property in distress.  Get everything you need to know before you invest your money in a short sale property.