Short Sale Winnetka IL
Short Sale is when a real estate property is sold for less than what is currently owed on the loan and the seller is unable to pay the difference. The lender agrees to accept less because the lender may lose more money by acquiring the property through foreclosure process and then holding the property until the lender can find another buyer. A Winnetka Homeowner seeking Short Sale Approval from a lender must submit details and specifics of their situation so the lender can determine Short Sale Approval.
Short Sale Process and Procedures
A Winnetka Short Sale is not what the name implies. There is nothing short about the Short Sale Process. In fact some Short Sale approvals can get approval in 6 to 8 weeks. Others take 90 days to a year. Different scenarios will determine how quickly your request will get approved. This is best to consult with a Short Sale Specialist. You should seek legal counsel and a accountant as well to make sure Short Sale is right for you.
Following is a typical Short Sale process at the bank:
- Bank acknowledges receipt of the file. This can take 10 days to a month.
- A negotiator is assigned. This can take 30 to 60 days.
- A BPO is ordered. The bank probably will refuse to share the results of the BPO.
- A second negotiator may be assigned. This can take another 30 days.
- The file is sent for review by the Investors. This can take 2 weeks to 30 days.
- The bank may then request that all parties sign an Arm’s-Length Affidavit.
- The bank issues a short sale approval letter.
Short Sale Approval Draw Backs
- The buyer cancels.
- Buyer can’t get loan approval.
- LLC documents don’t match buyer name (if applicable).
- Lack of POF from cash buyer.
- Buyer finds another Short Sale.
- Buyer changes their mind.
- Working with unmotivated bank employees.
Short Sale Process For Sellers
Banks grant Short Sales for 2 reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth. You will have to provide the Bank with a Short Sale Hardship Letter stating your reason why you are a candidate for Short Sale Approval.
A few examples of a hardship are:
- Unemployment / reduced income
- Divorce
- Medical emergency
- Job transfer out of town
- Bankruptcy
- Death
The seller will need to prepare a financial package for submission for Short Sale request to their Bank. Each Bank has its own guidelines but the basic procedure is similar from bank to bank. The Seller’s Short Sale package will most likely consist of:
- Third Party authorization, which lets your agent speak to the bank.
- HUD-1 or preliminary net sheet
- Completed financial statement
- Seller’s hardship letter (mentions above)
- 2 years of tax returns
- 2 years of W-2s
- Recent payroll stubs
- Last 2 months of bank statements
- Comparative market analysis or list of recent comparable sales
- Listing Contract
- Residential Purchase Contract
- 4506-T (Tax Form)
Short Sale vs Foreclosure
A Winnetka Short Sale is a much better alternative then allowing your home to go to foreclosure, which can severely tarnish your credit rating.
There are two stages of pre-foreclosure – homeowners behind on their mortgage payments and those who are behind on payments with a notice of default. Once the notice of default has been recorded, Banks tend to more motivated to agree to a Short Sale. Before a notice of default has been issued, there is still time for the homeowner to get caught up on their mortgage payments and bring the loan current.
A Winnetka Short Sale or pre-foreclosure can be a win-win proposition for all parties concerned. The Homeowner can get out from under the weight of their mortgage; the lender gets a new borrower to rescue the loan with a better financial status and the buyer who takes over the mortgage now owns a Winnetka real estate property below market price – Not to mention, the neighborhood and other sellers in the area are spared another foreclosed home bringing down property values in their area.
Short Sale Listing
Once a listing agreement has been reached, detailed information on your Winnetka Home For Sale will be entered into the Multiple Listing Service (MLS). Your home listing will include as much information as possible along with photos. Having your home listed in the MLS makes it available to all registered MLS Realtors and also makes your home listing available to potential buyers throughout the nation searching online MLS listings as well as multiple North Shore and Chicago metro-area real estate websites.
A Berkshire Hathaway KoenigRubloff FOR SALE sign will also be placed on your property that will help attract potential Short Sale Buyers and with the help of your Short Sale Specialist,who will arrange to show your home to Realtors representing other prospective Short Sale Buyers. You will be given the option of being notified prior to each showing. When an offer on your home is received, you will be notified right away.
Winnetka Real Estate, Winnetka Foreclosures and Winnetka Short Sales Professionalism, experience, commitment, determination and quality customer service are just a few of the many reasons why Crystal Tran Short Sale Specialist is a leader in the successful Short Sale Real Estate Market. You can rest assured that when you list your Winnetka Home For Sale with Crystal, she will “go the extra mile” to get it sold as quickly as possible and for the best price!
If you’re in the market to buy Winnetka Real Estate, Crystal will help you find the best deal in the right neighborhood to fit for your lifestyle, budget and needs. . Please feel free to contact Winnetka Real Estate Broker Crystal Tran directly for friendly reliable service. Discover why more and more families are relocating to the North Shore!
