Short sale realtors and the short sale process

Click on any of the items below to learn more about our short sale realtors, the short sale process, and our 100% success rate with selling houses as short sales.

    

What is a short sale?

A Short Sale is a winning solution for the homeowner and the lender.

A Short Sale is when you sell your house for less money than you owe.

The “money that you owe” includes any mortgages on your house, any taxes or liens, and any expenses related to the sale of your house (Realtor Fees, Closing Costs, etc.).

In a Short Sale the lenders accept a discounted payoff on the mortgage as an alternative to foreclosure. This means that the banks get paid less than the full loan amount owed to them. The end result is your home is sold, the mortgage is satisfied or released (paid off) and you avoid a foreclosure or a bankruptcy.

Normally, the bank(s) would require the homeowner to pay the full difference out of pocket. In a Short Sale situation, the lender(s) knows that the homeowner cannot pay the difference, so the lender(s) are willing to accept “discounted payoffs”, meaning the bank accepts less money than is owed on the mortgage.

Win-Win Solution

 

How Does the Homeowner Win?

  • Homeowner can sell house for less than they owe on mortgages
  • Homeowner does not have to pay real estate transaction costs (Realtors, Closing Costs, etc.)
  • Homeowner can buy a new house in as few as 18 months (vs. 5-7 years after Foreclosure or Bankruptcy)
  • Homeowner’s credit is ONLY impacted by approximately 75 – 125 points (vs. 350 – 500 after Foreclosure or Bankruptcy)
  • Homeowner’s credit shows Short Sale for ONLY 2 years (vs. 10 years after Foreclosure or Bankruptcy)
  • Homeowner will no longer have the stress of a mortgage they can no longer afford
  • Homeowner pays NO FEES to the Realtor EVER
  • Homeowner generally gets relief from future legal actions and deficiency judgments (depending on Bank)

 

How Does the Lender Win?

  • Lender receives the current market value for a quick sale of the home
  • Lender gets the house off its books enabling it to lend the money to other customers more quickly
  • Short Sales are less expensive than Foreclosures (legal fees, court costs, maintaining properties, reselling properties, etc.)
    

What does a short sale cost?

You pay NO REALTOR FEES EVER!!!

You will never have to pay our company the typical real estate transaction fees associated with selling your home. Typically, clients walk away paying nothing to complete their Short Sales when they use our local short sale realtors.
 

Other POTENTIAL Costs:

The VAST MAJORITY of the time, there are no costs that you pay out of pocket! Bowers Realty Group Short Sale Experts negotiate aggressively with the banks to ensure you owe nothing. Occasionally, some banks will require homeowners that are completing Short Sales to take small unsecured loans (typically around $5,000) that the homeowner must pay off over 5-10 years. These loans are typically at zero percent interest. The banks do this as a good faith gesture on the part of the homeowner. While our short sale team does its best to ensure you walk away owing nothing, we can’t promise that because the banks are in control. Even if you end up owing a small amount, it is MUCH better than going through foreclosure or bankruptcy where you could still owe hundreds of thousands of dollars even after they take the house.

    

The short sale process

Bowers Realty Group Short Sale Realtors’ goal is to make the Short Sale Process as stress free and simple as possible for you. We have streamlined the process to require minimal effort on your part. We strive to keep you as informed as you wish to be throughout the entire process. The following is a high level view of the Short Sale Process.

 

Step 1: Contact Bowers Realty Group to Begin the Short Sale Process

Online:Click the Message button below to contact our Short Sale team!
Or By Phone: 1-630-712-1921

 

Step 2: Initial Consultation

In our initial consultation with you, Bowers Realty Group Short Sale Realtors will thoroughly explain the entire Short Sale Process in much greater detail. Then we will answer any questions you may have about the short sale process, many of which are answered on this page. Finally, we will gather the preliminary information needed for beginning the short sale process with your bank(s). In this consultation, we will make sure you qualify to Short Sale your house. The two driving factors in a Short Sale situation are that your house is worth less than you owe and that you can prove you have a hardship that prevents you from continuing to make your mortgage payments. In today’s declining real estate market, the majority of houses are worth less than the homeowners owe on their mortgages. Hardship generally falls into one of two categories: decreases in income or increases in expenses. The following list is not a comprehensive list of all the allowable hardships, but it provides some examples you can use as references.

  • Death of Principal Mortgagor
  • Death of Mortgagor's Family Member
  • Illness of Principal Mortgagor
  • Illness of Mortgagor's Family Member
  • Marital Difficulties
  • Curtailment of Income
  • Unemployment
  • Excessive Obligations
  • Abandonment of Property
  • Distant Employment Transfer
  • Property Problem
  • Inability to Sell
  • Inability to Rent Property
  • Military Service
  • Business Failure
  • Casualty Loss
  • Energy-Environmental Costs
  • Servicing Problems
  • Payment Adjustment
  • Payment Dispute
  • Transfer of Ownership Pending
  • Fraud
  • Incarceration

 

Step 3: Documentation Preparation

As you recall, there was A LOT of paperwork involved when you took out a mortgage on your home. Unfortunately, there is just as much paperwork involved in getting out of your mortgage via a Short Sale. Fortunately for you, our short sale team handles most of the paperwork. You will be asked to provide documentation similar to when you took out your mortgage. Bowers Realty Group Short Sale Agents will clearly explain all the paperwork you need to gather for the process in our initial consultation. Some examples of the types of documentation you will need to gather are below:

ITEMS TO BE COLLECTED AND SENT TO Bowers Realty Group SHORT SALE REALTORS:

  • Hardship Letter: See short sale hardship letter guidelines. Describes how you got into present situation, what you have done to find a solution and why there are no solutions apart from a short sale presently available. It must contain the loan number, and be signed and dated.
  • Copies of 2 Most Recent IRS Tax Returns (1040): Your federal tax returns for the last 2 years. If you have not filed your tax returns for the past 2 years, you will need to include a letter of explanation and extensions.
  • Last 2 Years W2s: Your last two years of W2s will disclose your salary as reported by your employer to the IRS. If you are self-employed, in most cases you will need to send 1099s and a profit and loss statement.
  • Copies of the Last 2 Months of Bank Statements: All bank statements, for every bank account are required for submission. If there are large deposits or withdrawals on those statements, you may want to include a separate explanation because the processor will most likely wonder about it. Answer the question before it is asked.
  • Copies of the 2 Most Recent Pay Stubs: Regardless of how you are paid, whether it is monthly, weekly or bi-monthly, submit your last two months of payroll stubs. If you received a bonus or any other unusual increase of salary, you may want to include a note that explains this sudden increase.
  • Last Mortgage Statement: A copy of the last mortgage statement you received for EACH mortgage on the property.
  • Proof of Occupancy: The most recent Utility Bill you have received.

 

Step 4: Listing Your Home For Sale

Bowers Realty Group Short Sale Realtors will determine the price your home should be listed at to receive an offer quickly. After a price has been set, we will send you the listing paperwork to sign. Once we receive the listing paperwork back from you, we will have your short sale property listed for sale on the MLS and hundreds of other websites within 24 hours (or on a specific date of your choosing).

 

Step 5: Beginning And Managing the Short Sale Process with Your Bank

At this point, Bowers Realty Group will begin the short sale process with your bank. Unless your bank makes an additional request for information that is non-standard to all banks, YOUR WORK IS DONE!!! Our expert Illinois short sale realtors handle the entire short sale process from this point to closing. Bowers Realty Group does not use attorneys or third party negotiators to determine your future. Bowers Realty Group handles the entire short sales process internally. Through experience, Bowers Realty Group has found that the rigorous short sale process is better handled internally than outsourced to attorneys or third party negotiators. In the early phases of our short sale experience, we used multiple attorneys and third party negotiators and found their “expertise” unacceptable for our clients; therefore, we built our own internal team to manage the process. Bowers Realty Group has more control over the process, keeps detailed notes on the process in order to successfully get short sale approval from the lender thereby avoiding inaccuracies, unnecessary delays, or failed short sales due to missed bank deadlines.

 

Step 6: Accepting an Offer

Bowers Realty Group Short Sale Realtors will present you with all offers that potential buyers have made to purchase your property. At this point we will provide insight into which offers your bank will most likely accept. As with any real estate transaction, you control which offer you accept.

 

Step 7: Negotiations with your Bank(s)

Bowers Realty Group will manage the negotiation process with your bank(s) to receive approval to close.

 

Step 8: Closing

Approximately 30 Days after an agreement has been reached with your lenders and lien holders, the closing will take place. You are welcome to come to the closing or you can pre-sign all the documents and not attend the closing.

 

Bowers Realty Group Is Your Short Sale Solution

While our website contains a wealth of information about short sales, you really need to speak with us as soon as possible about your potential short sale situation. Every situation is different and you need help with your specific situation from Bowers Realty Group short sale experts that know how to successfully complete the short sale process, if it is right for you. The longer you wait, the more difficult the process becomes. Our consultations are free to you (as are our services to you) do not hesitate to contact us today to find out more about the short sale process and its potential benefits for your situation.

 


Disclosure:
The information contained in this website is intended to be used for informational purposes only and to provide a general overview of the topics described herein. There may be tax and other legal consequences associated with a Short Sale. Bowers Realty Group, LLC makes no representations or warranties concerning potential tax or legal consequences relating to any final disposition of any property. Clients are advised to consult with a tax professional regarding the potential tax consequences for their particular situation. Bowers Realty Group, LLC is providing a service in response to a complex situation and offers a recommended solution where possible. Nothing is represented as tax advice to our clients as every situation may result in different tax consequences. Bowers Realty Group, LLC is not a law firm or an accounting firm and regarding any specific questions relative to any transaction, Bowers Realty Group, LLC strongly encourages all parties, agents, and brokers involved in a transaction to seek such advice from a professional advisor. Bowers Realty Group, LLC does not guarantee any action or inaction on the part of the lender.

    

Documents required for a short sale

As you recall, there was A LOT of paperwork involved when you took out a mortgage on your home. Unfortunately, there is just as much paperwork involved in getting out of your mortgage via a Short Sale. Fortunately for you, our short sale team handles most of the paperwork. You will be asked to provide documentation similar to when you took out your mortgage. Bowers Realty Group Short Sale Agents will clearly explain all the paperwork you need to gather for the process in our initial consultation. Some examples of the types of documentation you will need to gather are below:

ITEMS TO BE COLLECTED AND SENT TO Bowers Realty Group SHORT SALE REALTORS:

  • Hardship Letter: See short sale hardship letter guidelines. Describes how you got into present situation, what you have done to find a solution and why there are no solutions apart from a short sale presently available. It must contain the loan number, and be signed and dated.
  • Copies of 2 Most Recent IRS Tax Returns (1040): Your federal tax returns for the last 2 years. If you have not filed your tax returns for the past 2 years, you will need to include a letter of explanation and extensions.
  • Last 2 Years W2s: Your last two years of W2s will disclose your salary as reported by your employer to the IRS. If you are self-employed, in most cases you will need to send 1099s and a profit and loss statement.
  • Copies of the Last 2 Months of Bank Statements: All bank statements, for every bank account are required for submission. If there are large deposits or withdrawals on those statements, you may want to include a separate explanation because the processor will most likely wonder about it. Answer the question before it is asked.
  • Copies of the 2 Most Recent Pay Stubs: Regardless of how you are paid, whether it is monthly, weekly or bi-monthly, submit your last two months of payroll stubs. If you received a bonus or any other unusual increase of salary, you may want to include a note that explains this sudden increase.
  • Last Mortgage Statement: A copy of the last mortgage statement you received for EACH mortgage on the property.
  • Proof of Occupancy: The most recent Utility Bill you have received.
    

Short sale experience with your bank

Bowers Realty Group Short Sale Realtors are certified to list and sell homes via short sale and foreclosure. Additionally, we are a preferred Short Sale Realtor Team for numerous banks. The banks call us and recommend us to borrowers to short sale their homes in Illinois. We have completed short sales through numerous banks, not all are listed below, but below you will find some examples:

  • American Home Mortgage
  • ASC
  • Bank of America
  • Carrington Mortgage
  • Chase
  • Citi
  • CitiMortgage
  • Countrywide Financial
  • EMC
  • Fifth Third
  • GMAC
  • GreenTree
  • Grundy Bank
  • Harris Bank
  • HSBC
  • Indy Mac Mortgage Services
  • ING Bank
  • LBPS
  • Litton
  • Midland Mortgage
  • Ocwen
  • Old Second
  • PNC
  • Seterus
  • Specialized Loan Servicing
  • US Bank
  • Wells Fargo

While most banks process short sales in a similar manner, feel free to Contact Bowers Realty Group today to inquire about our short sale realtor experience with your specific bank.

    

100% success rate with short sale programs

Bowers Realty Group Short Sale Realtors have closed 100% of their short sales in Illinois. We have successfully closed short sales through the HAFA short sale program, FHA short sale program, Chase special short sales, HELOC short sales, Fannie Mae short sales, Freddie Mac short sales, Bank of America special program short sales, traditional short sales, co op short sales and have dealt with short sales with multiple loans on a property. We not only know how to negotiate short sales with special programs and multiple loans, we have successful experience managing the process through these programs!

    

Why do a lot of short sales fail with other brokerages?

Why Most Short Sales Don’t Succeed… Don’t let this happen to you!

Short Sales fail for three main reasons:

  1. “Short Sale” Realtors don’t know how to price short sales to get an offer on your home. Most "short sale real estate agents" end up pricing your house too high because they don’t understand the pricing strategy differences between traditional sales, short sales, and foreclosures. This will either lead to you not receiving any offers or your home being foreclosed on because the process takes too long to find a buyer because the real estate agent has to lower the price multiple times to get you in the correct pricing tier for short sales in your area. Our Illinois Short Sale Realtors are experts at determining the price to list your home as a short sale.

  2. "Short Sale Real Estate Agents" require that you start the short sale process offered by your bank before you have an offer from a buyer. In the past, banks required that you had an offer on your home before you began their short sale process. Recently, banks have come out with short sale programs that allow you to enroll in their short sale program before you have an offer. These bank short sale programs are actually great vehicles for short selling your home. They will speed the process of completing this difficult situation. The key is that they work best with an offer already in hand! You need a short sale team that understands this and can execute the process successfully! While starting without an offer sounds tempting, Bowers Realty Group Short Sale Realtors caution you on enrolling in these programs without already having an offer. The reasons we caution against enrolling in your bank’s program before having an offer are:
      • The bank will set the price of your home sale, not your Realtor. Banks are notorious for setting prices too high to start. After all, they believe getting as much money as possible is in their best interest. The banks do not understand that doing so limits your chances of receiving an offer within the banks required time frame. This essentially shoots you and the bank in the foot. The short sale is doomed to fail from the start. There are ways to still start the process without an offer, but you need a short sale real estate broker team that understands how. Contact our Short Sale Realtor Team to discuss your situation and options today!

      • In these bank offered short sale programs, the bank sets a time limit on how long you have to complete the short sale from start to finish. The number is usually between 90-120 days. After that time expires, the banks will take your home “deed-in-lieu of foreclosure,“ which is more cost effective for them. The reason this is a major problem is that your bank may not allow price reductions on your home for 90-120 days. Essentially, this means that the bank sets one price (usually too high) for your home and if it doesn’t sell at their “too high” price, they take your home “deed-in-lieu” and you lose the chance to short sale your home.
  3. Real Estate Agents that don’t specialize in short sales allow real estate attorneys or third party negotiators to handle the short sale process with banks and treat the rest of your home sale as a traditional listing. Attorneys and third party negotiators are in the same boat as these realtors. The only thing that matters is actual short sale experience! In many cases, the realtor assumes the attorney or third party negotiator has experience in short sales, or that they will spend the necessary amount of time managing the process, when in fact the attorney or third party negotiator either is inexperienced in short sales or do not give the short sale transaction the time and attention it needs to be managed through a successful completion. Our short sale team has the experience and we don’t use attorneys or third party negotiators to determine your future. Bowers Realty Group Short Sale Realtors handle the entire process of short sales internally. Through experience, we have found that the rigorous short sale process is better handled internally than outsourced to attorneys or third party negotiators. In the early phases of our short sale experience, we used multiple attorneys and third party negotiators and found their “expertise” unacceptable for our clients; therefore, we built our own internal team to manage the process. Bowers Realty Group has more control over the process, keeps detailed notes on the process in order to successfully get short sale approval from the lender thereby avoiding inaccuracies, unnecessary delays, or failed short sales due to missed bank deadlines.

 

    

The most important factor in short sale success

Pricing your short sale – The most important factor in short sale success

You need a Short Sale Realtor team that understands then difference between traditional home sales, short sales and foreclosures and how to price each differently to receive an offer on your short sale property. Pricing your short sale is a very important component of selling your house! The real estate agent your friends, family, or co-workers recommended will cost you the most money, time, frustration, and possibly foreclosure here! Most of these "recommended short sale real estate brokers" will list your home at any price you set, to get you to use their service…
 
Listing your short sale home at their/your arbitrary price will cost you money and time. It will cost you money because you will be paying mortgage payments you don’t need to make. On top of that, it will cost you time and frustration. Eventually, due to the ”short sale” Realtor’s failures, your house will eventually go into foreclosure. As a short sale home seller, you need an offer as soon as possible and one that meets what a bank’s appraiser will value your property at. If you choose an inexperienced short sale agent, they will either list your home at a price that is too high, that will either not get you an offer or get you an offer that won’t appraise out. Otherwise, the self-proclaimed “Illinois Short Sale Realtor” will price your home too low and the buyers will not be willing to pay more when the bank requires a higher purchase price than the initial buyer offer because the home buyer can’t afford to pay more. In either case, the buyer walks away and you get foreclosed upon. This is a major reason over 80% of short sales fail. The so called “Short Sale Realtor” doesn’t know how to deal with pricing the short sale or how to communicate with the home buyers and home buyers’ agent about eventual pricing fluctuations.

Most real estate brokers will price your home according to how they are accustomed to pricing homes. They will pull statistics about all home sales and home listings in your area. This is a big mistake if you want an offer from a buyer that will stay with you through the process. Don’t make that mistake, hire the best short sale realtors in Illinois today, Bowers Realty Group!
 
Short Sale homes and Foreclosure homes require different pricing tiers than traditional home sales. Short Sales require lower prices than traditional home sales due to the time it takes for a buyer to eventually close on the home and be able to move into it. This process takes substantially longer than a traditional home sale, which is why your price needs to be lower than traditional sales (on the upside, you get to stay in the house longer – mortgage free if you choose or your financial advisor recommends not paying your mortgage).

Foreclosures require an even lower price tier than short sales. While foreclosures can close more quickly than short sales they are usually in much worse condition.
 
Your bank and their appraisers understand the differences in pricing tiers… Do you? Does your friend’s/family’s recommended realtor? Bowers Realty Group Short Sale Realtors do!

    

Short Sale (FAQs) Frequently Asked Questions

 

WHAT IS A SHORT SALE?
A short pay is a negotiated settlement that the lender or lenders may accept in lieu of the total amount owed to pay off a loan as an alternative to foreclosure. We can almost always convince a Bank/Lender that they will be “better off” if they take a “Short Sale” now rather than getting the property back by foreclosure and trying to sell it later with extra additional costs and expenses.

 

HOW MUCH TIME DOES THE SHORT SALE PROCESS TAKE?
The “Short Pay” discount negotiation process can be a lengthy one. It could take between two and six months to get an approval. Many Lenders have several layers of “red tape” that we will have to cut through in order to get an approval. So please be patient and understanding during this process, as we will be pushing as hard as we can to get the needed approvals.

 

HELP! MY HOUSE IS GOING TO FORECLOSURE, IS THERE ENOUGH TIME?
Sometimes there is and sometimes there is not. Just starting the negotiations will not automatically put a stop to foreclosure. However, many times we can convince a Lender to pause the foreclosure to let us attempt to negotiate a short sale. Therefore, while there are no guarantees, it does not hurt to try.

 

WHEN DO I NEED TO MOVE?
The purpose of a “Short Sale” is to get the needed discounts from the lender(s) so that the property can be sold before the foreclosure auction. One way or the other, you will be moving. Typically, it still takes time to close on the home, so you still have time to find a new place to live. You need to be moved prior to closing. If you need assistance finding a rental home, we can help with that as well.

 

ARE THERE ANY PROMISES OR GUARANTEES THAT THIS WILL WORK?
NO! There cannot be a promise or guarantee to save your home from foreclosure. When mortgage payments are missed, the Lender/Bank takes control and can proceed directly to foreclosure. However, most of the time, they do not want to and we are excellent at presenting alternatives to the Lender/Bank that they many times will accept rather than foreclose. We are excellent at what we do, but NO PROMISES are made from us to you as to whether or not the Lender will accept a “Short Pay Discount” – they may or may not.

 

CAN I GET ANY MONEY FROM THE SALE?
Maybe. In granting a “Short Pay Discount”, you the borrower will not get any proceeds from the sale of the property. If the lender is going to take a loss, they will not allow you the borrower to receive any proceeds. The exception to this rule is when your bank has a special program that they inform you of. In special bank programs you, the borrower, usually will receive money from the bank for successfully completing your short sale. The amount you recieve will vary by bank and by program. The amount you receive is not considered a proceed from the sale. The banks consider it an incentive not a proceed.

 

WHAT DOES THE TERM “SATISFACTION” MEAN?
This is when a Lender accepts a “Short Pay” discount from what is owed as a complete and total satisfaction of what was owed on your property and releasing its lien against the property when it is sold.

Advantages: Your mortgage and note, the total amount of your agreed obligation to the Lender is termed “Satisfied” at a discount from what is owed. When the property is sold, the debt is paid off entirely.

Disadvantages: You will get a 1099 IRS form showing the difference between what you owed and what was accepted as a discount. These same tax consequences exist whether you obtain a Short Sale or if the property goes to the foreclosure auction and sold at a discount there or sold later as an REO property at a discount. We do advise that you should discuss this with your tax advisor because the Lender is making money you owe disappear. Sometimes our negotiations are successful in obtaining a satisfaction. Sometimes all we can get is a release.

 

WHAT DOES THE TERM “RELEASE” MEAN?
A Lender may offer to “release” its lien or interest against the property in exchange for less than the total amount of the loan. A release will allow the property to be sold without paying off the total amount of the note. However, the note is not termed “satisfied”.

Advantages: This successful “Short Pay” will allow the property to be sold and therefore avoid a foreclosure.

Disadvantages: The remaining debt on the property, sometimes called a “short fall deficiency,” still remains. You are still liable for the note – in other words – you still owe the outstanding money. The Reality: It is not likely that the Lender will pursue the short fall balance unless you are solvent with significant assets. If you don’t try a “Short Sale” and the property goes to foreclosure and is sold for less than what you owe you will have a “Short Fall” balance anyway. So what does it hurt to try?

 

DO YOU ACCEPT SHORT SALES IN MY CITY?
We will work with homeowners in any city in Northern Illinois to process their short sales. Our time tested short sale systems will work for you regardless of which Northern Illinois city you live in. We have handled numerous short sales in Chicago and every collar county. We can and will accept your short sale! We are here to help.

 

HOW CAN I, AS THE HOMEOWNER, HELP?
The Lender/Bank will need to review documents that will include: two months bank statements, two months pay stubs, two years IRS tax returns and other information. The usual cause of delay and even dismissal of offers to the Lender/Bank is due to the Seller failing to provide these items at the time of our “Short Sale” paperwork signing. To help make this successful, please make sure you have all the short sale documentation submitted to us at the beginning of the short sale process.

 

IS A SHORT SALE RIGHT FOR ME?
The following are typical reasons Short Sales are executed:

  • You are experiencing any type of financial hardship (decrease in income or increase in expenses)
  • You owe more than your property is worth
  • You are struggling to make your mortgage payments
  • Your interest rate, monthly payments, or mortgage balance has been increasing
  • You are relocating to a new area and paying for the current property and a new living situation is not feasible

 

CAN I SHORT SALE MY PROPERTY IF I HAVE MORE THAN ONE MORTGAGE?
Yes. That is very common.

 

WHAT IF MY PROPERTY TAXES HAVEN’T BEEN PAID OR WERE SOLD?
We will attempt to include the cost of redeeming the sold or delinquent taxes in the Short Sale to the lender.

 

ARE THERE ANY TAX CONSEQUENCES?
The Mortgage Forgiveness Debt Relief Act was passed to allow homeowners to short sell their homes up to 1 million dollars with no tax consequences. We cannot provide legal or accounting advice, so be sure to consult with your tax professional for more information. Please click here for a direct link to the IRS website.

 

WHAT TYPES OF REAL ESTATE CAN I SHORT SALE?
You can Short Sale your primary residence, a second home, or an investment property. Almost every type of real estate can qualify for a Short Sale.

 

CAN ANY REALTOR HANDLE A SHORT SALE EFFECTIVELY?
Unfortunately, a lot of real estate agents, brokers, and attorneys claim to know how to complete Short Sales. However, Short Sales involve negotiating back and forth with the lender, spending dozens of hours on the phone and being able to meet your lender’s very specific Short Sale guidelines to ensure you will be approved. On average, over 87% of Short Sales handled by other real estate agents are unsuccessful. Bowers Realty Group Short Sale Realtors have close 100% successfully.

 

CAN I SHORT SALE IF MY PAYMENTS ARE STILL CURRENT?
Yes.

 

CAN I SHORT SALE IF I ALREADY RECEIVED A FORECLOSURE NOTICE?
Yes.

 

CAN I SHORT SALE IF I HAVE ALREADY RECEIVED A LOAN MODIFICATION FROM MY LENDER?
Yes.

 

CAN I SHORT SALE IF I HAVE BEEN DENIED FOR A LOAN MODIFICATION OR FORBEARANCE AGREEMENT?
Yes.

 

CAN I SHORT SALE IF I AM IN THE PROCESS OF A MODIFICATION?
Yes.

 

SHORT SALES SOUND TOO GOOD TO BE TRUE. WHY WOULD A LENDER AGREE TO SHORT SALE AND TAKE A LOSS?

  • The foreclosure process is very costly to the lender(s) (about $70,000) and after attorney, court and administrative fees; the lender will likely be in possession of a property that has even further depreciated.
  • When it becomes apparent to the lender that the homeowner will no longer be making mortgage payments, the loan becomes a “non-performing asset,” also known as a “toxic asset.” This means the bank will suffer a loss on this property every month. The bank would simply rather liquidate the property and take a loss now, then sustain a monthly loss over a long period of time.

 

WHAT IS A FORECLOSURE?
In simple terms: The homeowner has not been making the mortgage payments, and it is the action the financial institiution can use to take the house back. The homeowner borrowed the money using the house as collateral with the agreement that if they could not pay it back, the lender could take the house.

    

Short Sale vs. Bankruptcy vs. Foreclosure

Foreclosure and Bankruptcy are NOT your only ways out!!!
You CAN sell your house, if you owe MORE than it’s worth!!!
 

Most people at this point are resigned to the “fact” that foreclosure or bankruptcy are their only ways out. The phrase “LET THEM JUST TAKE THE HOUSE” is used all the time in this scenario. It is very important to understand that they don’t “just take the house.” There are many negative impacts of foreclosure and bankruptcy other than just losing your house.

Court Judgments:

  1. Short Sale: We Negotiate with the Bank to Attempt to Prevent Any Judgments
  2. Foreclosure: Court Can Require You to Pay Mortgage Companies The Outstanding Balance Through Payroll Deductions
  3. Bankruptcy: Court Decides How Much You Still Owe to Creditors

Credit Score Impact:

  1. Short Sale: 75 - 125 Point Reduction
  2. Foreclosure: 200 – 300 Point Reduction
  3. Bankruptcy: 500 Point Reduction

Stays On Credit Report:

  1. Short Sale: 2 Years
  2. Foreclosure: 7 Years
  3. Bankruptcy: 7 - 10 Years

Stops You From Buying Home:

  1. Short Sale: As Few As 18 Months
  2. Foreclosure: For Up To 5 – 7 Years
  3. Bankruptcy: For Up To 10 Years

Credit Cards:

  1. Short Sale: No Impact
  2. Foreclosure: Credit Limits May Decrease OR Interest Rates May Rise OR Cards May Be Cancelled
  3. Bankruptcy: Credit Limits May Decrease OR Interest Rates May Rise OR Cards May Be Cancelled

Privacy:

  1. Short Sale: NOT Public Record – Neighbors, Friends, Family, etc. only know what you tell them, if anything.
  2. Foreclosure: Public Record – Anyone can see that your home was foreclosed upon (neighbors, friends, family, employers, etc.)
  3. Bankruptcy: Public Record – Anyone can see your bankruptcy (neighbors, friends, family, employers, etc.)

Follow Us on Facebook Follow Us on Twitter

Copyright © 2013-2024. Bowers Realty Group
Sponsored by Bowers Realty Group – Headquarters: Plainfield, IL
Office Phone: (630) 712-1921 | Email: agent@teambowersrealtors.com