Is a short sale right for you?

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 

The Lawyer Referral service helps you connect with an attorney who concentrates their practice in the type of law in which you need assistance. The service offers up to 30-minute consultations with an attorney at no charge. The attorneys will charge his/her regular rate beyond that half hour. Fees should be discussed during the consultation. You are not obligated to hire the referred attorney nor is the attorney obligated to accept you as a client.