Is a short sale right for you?
DCBA Announcement (Wednesday, August 08, 2012)
For immediate release
- Leslie Monahan, DCBA Executive Director
- 630-653-7779 | firstname.lastname@example.org
Wheaton, Illinois -- It has been estimated that between 2006 and 2013, nearly 1 in 5 homes throughout the entire country will have faced foreclosure. With these stats continuing to climb, short sales have become more prevalent.
A short sale is when a property sells for less than the amount owed on the mortgage(s). When the balance of the mortgage exceeds the market value, investigating whether your property can be considered for a short sale may be a good alternative.
Any contract should be contingent on your lender's approval. In a short sale with all of the necessary approvals from your mortgage lenders(s) you may not be required to pay the difference between the sale price and the balance owed. A homeowner should look for a complete waive of the difference so that there is no further responsibility for repayment to the bank.
Lenders will typically approve a short sale when they feel it is in their best interest, however, it is important to note that lenders are not required to approve short sales. Short sales are usually approved only in cases where a seller has a hardship making payment of mortgage difficult or impossible; running up more credit card debt alone is probably not enough. If you lost your job or had large medical bills, for example, then you might consider a short sale. A short sale will still have an adverse effect on your credit rating as the debt will be reported as compromised or settled rather than paid in full and you may incur an income tax liability as a result of the forgiveness of debt.
If you need help finding an experienced attorney for your real estate needs contact the DuPage County Lawyer Referral Service to get up to a free 30 minute consultation with an attorney.
You can reach the DuPage County Lawyer Referral Service at 630-653-9109 or visit dcba.org and click the "find a lawyer" link.
(Please note: this information should not be used as a substitute for legal advice prepared for you by your lawyer.)
About the DuPage County Lawyer Referral Service
About the DCBA The DuPage County Bar Association, founded in 1879, represents over 2,200 member attorneys dedicated to advancing the practice of law and promoting the legal profession through community service and education.
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