Short Sales

Unfortunately, I am talking with more and more homeowners that are in trouble. They either bought their property or refinanced it at the height of the market a few years ago. Their expectations of appreciation haven't been met or, in the worst cases, their home's value has decreased slightly. Now they are faced with the prospect of selling their home and, after paying closing costs, they won't be able to pay off their loan.
A short sale is exactly that--the lender will essentially forgive a portion of the debt allowing the homeowner to sell the home for less then what they owe the bank. As you can imagine, banks aren't too thrilled at the prospect of losing money but they have their reasons to take this option as well. They might make more on the short sale than if the property goes into foreclosure, for instance.
For a more thorough explanation of short sales, here is a great article that outlines the basics of a short sale. As always, getting the right representation is essential. Working with both an attorney and a Realtor who has experience with short sales is crucial to a smooth, successful transaction. If you have any questions about short sales, in the Chicago area, please don't hesitate to email me: jbarclay@prupref.com