Archive for the ‘Short Sales’ Category
Short Sales and Foreclosures
“What is the difference between a Short Sale and a Foreclosure?”
“I don’t want to be involved in a foreclosure because of how long the process is.”
These are examples of common questions and statements that I hear by buyers regarding the current state of the market.
The most basic way to describe a short sale is that it occurs when a homeowner defaults on his mortgage. The homeowner then tries to sell his home for less than what he owes on his mortgage. He discusses this with his lender to receive permission to present offers to them that they will then decide to accept or reject.
Once the homeowner receives a suitable offer, he presents it to the lender. The lender then decides whether they are willing to accept this amount and let the homeowner out of his mortgage. Short Sales can take a few months or longer than a year to reach closing. Buyers generally get great deals when they purchase homes in short sales.
Please contact me for a list of short-sales in Chicago and the North Shore.
A myth about foreclosures is that the process is too time consuming and arduous to go through. Unlike short sales, foreclosures are much easier to deal with. In a foreclosure, the lender has taken ownership of the property and is aggressively trying to sell it. Lenders generally do not negotiate on price as much as in a typical home sale. However, they commonly price the home at or below market value and reduce the price at a steady rate until the property has sold.
Please contact me for a list of foreclosures in Chicago and the North Shore.
