Short Sales: Answers to Frequently Asked Questions

 Posted on March 15, 2023 in Real Estate

If you are a homeowner who is facing a genuine risk of foreclosure, you may have heard that conducting a “short sale” could serve as a viable way to resolve your circumstances. When circumstances are dire, it can be tempting to jump at any suggestion that could land you back on your feet. However, it is important to understand what you are getting into before committing to a short sale.

Our firm offers free consultations to anyone who is facing foreclosure and could benefit from a confidential, no-cost case assessment. Before you attend your session, consider looking over answers to some of the most frequently asked questions that we field from distressed homeowners who are seeking solutions. Making this effort can help you to become more familiar with one of the primary ways to resolve an impending foreclosure.  

What Is a Short Sale?

“Short sale” is a real estate term that involves offering to sell a home for less than what an owner owes on their mortgage.

Why Would I Want to Sell My Home for Less than What I Owe?

If a loan modification or filing for Chapter 13 bankruptcy are not viable solutions to your risk of foreclosure, you may benefit from embracing a short sale option to keep your lender from foreclosing on your house.

Who Keeps the Proceeds of a Short Sale?

If you sell your home via a short sale, your lender is entitled to the proceeds. You may be required to repay the balance on your mortgage or your lender may forgive the remainder, depending on your circumstances. Your lender must approve a short sale before you finalize this process, so you will be made aware of whether you will be held responsible for your remaining balance or not as you discuss this process with your lender.

Why Should I Avoid Foreclosure if I Am Not Going to Live in My Home Anyway?

Your credit score and credit history are going to incur less damage if you avoid foreclosure. If your house is foreclosed upon, you will likely need to wait two to seven years to purchase your next home.  

Connect with a Knowledgeable Lake County, IL Foreclosure Defense Lawyer for More Information

As there are several potential ways to address the risk of foreclosure, it is a good idea to seek legal guidance before choosing one option over another. That way, you can make informed decisions about whatever steps you choose to take next.

To get started, connect with the skilled North Chicago, IL foreclosure defense lawyers at Newland & Newland, LLP by calling us at 847-549-0000 or submitting a contact form on our website. You can schedule a case evaluation at no cost and begin the process of assessing your options in a risk-free, confidential setting. We look forward to speaking with you.

Source:

https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=073500050K15-1401.1

https://www.investopedia.com/terms/r/real-estate-short-sale.asp