Short Sales

Chicago Short Sale Lawyer

 

Helping Clients throughout Chicago and the Suburbs with Short Sales and Loan Modifications

Given today’s uncertain and precarious economic landscape, short sales and loan modifications have become increasingly more common. Many homeowners are devastated to learn when they want to sell their home that it is worth less than they owe on the home’s mortgage. This situation is commonly referred to as being “upside down” on the mortgage.

One remedy for dealing with an “upside down” real estate situation is to proceed with the sale of the property as a short sale or to request a loan modification with the mortgagor. Chicago short sale attorney Glenn Betancourt is experienced in handling short sales and loan modifications, as well as other forms of loss mitigation such as foreclosure.

Contact his Des Plaines office at (847) 768-5805 or his Chicago office at (773) 252-5923 to schedule a free consultation to learn more about how he can help you with your residential real estate issues.

What is a short sale?

A short sale is when a homeowner sells the property at a price less than the amount that he or she owes on the property’s mortgage. A short sale requires the approval of the lender to accept less than a full repayment of the mortgage amount. A short sale allows the homeowner to sell the property and avoid foreclosure.  Many times, lenders are more likely to agree to a short sale than a foreclosure since it will often yield a greater return on their loan.

Are there any benefits of a short sale rather than a foreclosure to a homeowner?

Not only is a short sale more advantageous for the lender, but a short sale is also more favorable for the homeowner as well.  First, the homeowner’s credit score will not be as negatively affected as it would be following a foreclosure since the loan will deemed “paid” on the credit report. The credit report will, however, include a notation that the loan “settled for less than originally owed,” but this notation is looked upon much more favorably than a foreclosure designation.

Do all homeowners qualify for a short sale?

In order to proceed with a short sale, you will need to obtain the approval of your lender. Most lenders require that you submit a short sale application confirming that you are, in fact, suffering from economic distress. If you are unable to show that you are suffering from economic distress, your lender may require you to continue making payments on the property until the real estate market reaches a point where you can sell the property for an amount sufficient to satisfy the outstanding mortgage balance.

The short sale application may require that you submit bank statements, affidavits of income/assets, or other financial information to your lender. Chicago short sale attorney Glenn Betancourt can help you prepare your short sale application so that the lender is more likely to look upon your situation favorably.

Does a short sale release homeowners of all liability?

Generally, once a lender approves the short sale, the homeowner will be relieved of all mortgage liability with respect to the property. In some instances, however, the lender may require that the selling homeowner sign a promissory note to repay the unpaid portion of the loan. A short sale will not remove liability that the selling homeowner may have to the buyer, however.

What should I do if I am unable to make my mortgage payments?

If you are experiencing financial troubles and are unable to make your mortgage payments on your home, you should immediately seek the assistance of an Illinois short sale attorney.  Glenn Betancourt has considerable experience helping individuals and businesses who are facing financial problems. He helps clients find legal solutions to their financial problems, such as short sales, loan modifications and bankruptcy, so that they get regain their financial footing.

Contact Chicago short sale attorney Glenn Betancourt at (847) 768-5805 in Des Plaines or at (773) 252-5923 in Chicago to schedule a free consultation to learn more about how he can help you with your financial problems through a short sale, loan modification, or bankruptcy.