Chicago Short Sale Attorneys

Can you no longer afford to keep your mortgage payments current?

Have you found that due to the real estate market crash, your house is no longer worth what you paid for it, and that your home value continues to decline so that any hope of building equity in your home feels like a pipe dream?

Perhaps you have tried selling your home, only to learn that the market will not bear a listing price that is more than what you owe on your home.

If so, you are not alone. In the first quarter of 2011 more than 28 percent of U.S. homeowners with mortgages owed more than their properties were worth, as values fell the most since 2008, per Zillow Inc.

There is a solution! A short sale may be your best option to control your mortgage debt and stay out of bankruptcy and foreclosure proceedings.

A short sale is a real estate transaction in which the proceeds from the sale of a property are less than the amount owed on the mortgage, and the mortgage lender accepts the amount offered when releasing its lien and foregoing foreclosure. The seller turns over the proceeds of the sale to the lender, and the debt may be fully satisfied. The homeowner must negotiate with the bank’s loss mitigation or workout department prior to the sale to accept the amount offered, to see if the lender is willing to release its lien on the home for less than the outstanding balance including interest and penalties.

Although a short sale is typically executed to prevent foreclosure, the decision by the bank to proceed with discounting a loan balance is predicated on its self-interest in recovering as much of the amount owed on the property as possible, in the most economical way. Not all lenders will accept a short sale if it makes better financial sense for them to foreclose and suffer a smaller loss. When making their decision, banks look at extenuating circumstances, such as the current real estate market and the borrower’s financial hardship. Indeed, the bank faces carrying costs with foreclosure as well as expenses with receiving and maintaining foreclosed properties.

Spalding Law Center can give you the straight facts to determine if a short sale is in your best interest. We represent homeowners and investors who need to sell properties they cannot afford to keep. We think this can be a great option, as mortgage lenders do generally want to keep your property out of their foreclosed inventory. It is a great benefit for you to be able to sell your property without owing the lender any money or having a foreclosure on your credit report.

It is important that you seek legal guidance when negotiating the short sale with the bank to ensure that your obligation is indeed fully satisfied. We have seen a number of bankruptcy clients come to us after they still owed money to the bank subsequent to a short sale. Without representation you could be required to sign a promissory note to cover the difference between the purchase price and the total amount still owed on the mortgage. We will make sure this does not happen. We will explain the process for a successful short sale during a free initial consultation with you. We will take you through every step of the process to list the property, handle all documentation and negotiations with the bank, reach a deal with a buyer, and close the transaction to finalize the deal. The lender pays all but a minimal amount of your legal fees and the costs of the transaction out of the money your buyer brings to the transaction. Our legal staff is experienced and has in-depth knowledge of the local real estate and mortgage lending community. Combined with our bankruptcy experience, we have the experience you need to best advise you to the most cost-effective solution to your mortgage problem. Give us a call!