How Does A Short Sale Work?
A short sale is when a homeowner sells their home for less than is owed on their mortgage and the homeowner’s bank agrees to accept less than a full payoff to settle the debt. For example, if you own a house that is worth $300,000, but the mortgage is $500,000, your lender might agree to accept $300,000 to settle the debt and allow you to walk away without owing anything else.
While you may have heard that a short sale is a simple process, nothing could be further from the truth. The fact of the matter is that there are only a handful of people in the entire country who have processed enough short sales to fully understand the obstacles and pitfalls that you might encounter when attempting to get a short sale approved. An experienced attorney is an invaluable resource that can guide you through the short sale negotiation process and, in many instances, will be the difference between having your short sale approved or denied.
In addition to negotiating with your lender, it’s crucial to have an attorney representing you who can navigate the foreclosure courts. Why? Because this is the best way to ensure that the bank does not take a judgment against you and complete the foreclosure process while you are still in the negotiation process.
Citizens Law Group is a real estate law firm that has processed thousands of loss mitigation applications with a specific focus on successfully negotiating short sales. If you are considering a short sale, don’t hesitate to contact us for a consultation to find out what your best next steps might look like.
What Are The Benefits Of A Short Sale?
Homeowners who are behind on their mortgage benefit from a short sale in several ways:
- Repair Your Credit
- Qualify To Purchase A New Property Quickly
- Eliminate Foreclosure Without Filing For Bankruptcy
- Owe Nothing To The Bank –
- Even if you owe more than your property is worth
- Pay Nothing To Get It Done –
- The lender will pay attorney fees, realtor fees, title fees, and transfer taxes
- Get Free Money To Move –
- Lenders will sometimes provide relocation funds to help you move – (typically between $3k and $10k)
- And more…
Should You Short Sell Your Property?
The first question a homeowner needs to ask is whether or not they want to save their home…
If you want to keep your home, then we must first explore options that will allow you to save your home from foreclosure. Citizens Law Group will review your financial situation to determine whether there is a viable option that would allow you to save your home, such as a loan modification or Chapter 13 Bankruptcy.
If you want to save your home and are a strong candidate for a loan modification and/or can qualify for a Chapter 13 bankruptcy, then a short sale is not your best option. In those instances, we can help you to save your home with a loan modification or a Chapter 13 Bankruptcy.
On the other hand, if you are not likely to receive a modification and don’t qualify for a Chapter 13 Bankruptcy, then a short sale is probably your best option.
If you do not want to keep your home, then a short sale is almost certainly going to be the best way forward.
Citizens Law Group can seamlessly guide you through the process by negotiating with your lender to review and approve your short sale request. We will use our years of experience to give your short sale package the highest likelihood of approval.
In the event that there are appraisal issues, your lender is non-responsive, or there are other issues that are not being adequately addressed, we will take appropriate steps to have these issues resolved by filing appeals and/or bringing complaints to the applicable governmental agency regulating your loan.
Short sales come with some important considerations:
- The type of loan (FHA, Fannie, Freddie, Conventional)
- The number of mortgages on the property
- Other title issues, such as judgment liens, tax liens, etc.
- Homeowner Association Restrictions
Unfortunately, Illinois homeowners are often misled into thinking that it is wise to use someone who is not an experienced attorney to process their short sale request. However, this is a huge mistake, there is no reason that you should have someone negotiate your short sale who is not licensed to explain and evaluate all legal considerations that are at play when you sell a property.
Additionally, it’s ideal to work with attorneys like us who have experience processing short sales and representing homeowners in foreclosure. This is because if you are behind on your mortgage, there is a good chance that your property is also in foreclosure.
An attorney with the right experience can point out the signs of foreclosure and ensure that your property is not sold at auction while they work towards obtaining a short sale approval from your lender.
At Citizens Law Group, we know that the difference between success and failure can oftentimes hinge on whether you have an experienced attorney representing you, and when it comes to your financial future, there is no reason to settle for anything less than the best.
We Succeed Where Others Have Failed
Citizens Law Group is the firm homeowners come to after they have been unable to successfully complete a short sale. Many of our clients think that a short sale is no longer an option for them because they have been unsuccessful in the past. But while many of these homeowners come to our office thinking that nothing can be done, they are often proven wrong.
We regularly help homeowners who think that they are out of options after working with an inexperienced attorney or real estate agent and. Oftentimes, we are able to obtain a successful result – even after our clients have lost all hope.
How is this possible? Experience is exceptionally important in this work, so it’s invaluable to retain an attorney who has handled hundreds (or more) short sale transactions because they will have a broad wealth of knowledge that will allow them to overcome unexpected obstacles and to anticipate roadblocks before they arise
The difference between success and failure often boils down to who you have working with you. As a result, there is no substitute for experienced, knowledgeable, and diligent representation. If you are looking for the best service and support throughout your short sale, call Citizens Law Group to get started today.
Speak With A Top Short Sale Attorney In Chicago, IL
Our attorneys have protected homeowners throughout Illinois and the Chicagoland area to protect their credit by completing a short sale.