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Residential Real Estate Sellers

Everything You Need to Know About Short Sales in Illinois

By April 27, 2023August 16th, 2023No Comments

Your home is probably one of your largest investments. While the thought of selling your house usually brings feelings of stress and terror, it may be necessary if you can no longer keep up with repayments. 

At Diamond Real Estate Law, we help the citizens of McHenry, Illinois, work through all aspects of their real estate deals—including short sales. This blog covers what a short sale is, how it can benefit you, and how to get in touch with a real estate attorney if you’re ready to move forward with this type of sale.

What is a Short Sale?

A short sale is when you sell a property for less than you owe (or need to pay off all liens). In order to do this your lender (or lienholder) needs to approve of the sale.

There are a few options for you in the state of Illinois before your home gets foreclosed. The good thing is you usually have several months after a delinquent payment before proceedings even start. 

It’s important to note that short refers to the payoff to your lender, not necessarily the length of the process. A short sale usually requires a written agreement from your lender and can take anywhere from 30 days to 6 months (or even longer) to complete.

Why Sell My House Through a Short Sale?

Despite all the potential complications, short sales are one of the most common ways to sell a house in Illinois. Let’s take a moment to discuss a few of the main benefits of this strategy.

  • The seller avoids the negative impact of a foreclosure
  • Short sales may do less damage to your credit score
  • Short sales can possibly absolve you from some or all of your mortgage debt (deficiency)

First Steps in the Short Sale Process

Short sales might not be for everyone, but they can be a win-win for all involved. 

The first step is getting someone who is well-versed and knows all the ins and outs of short sales. You will want to ensure you find a real estate attorney who can let you know all of your options.

Understanding the Process of a Short Sale

If you’re thinking of embarking on the strategy as a buyer, then you need to know as much as you can about it. Here’s a closer look at the process.

  1. Find a Real Estate Agent: The first thing you’ll need to do is find a real estate agent. While you can definitely do this on your own, a real estate agent has a much better chance of finding potential buyers.
  2. Hire a dedicated McHenry Real Estate Attorney: Agents can help you with the business side of things, but an experienced real estate attorney is necessary to help ensure all the legal ins and outs of buying or selling real estate are covered.
  3. Conduct Research: Research is the most important thing that you can do. Do your research on the property and any liens or unpaid taxes. Be sure to calculate the value of the property after repairs are completed.
  4. Pay Attention to the Sale: The seller must present to the lender the reason why they are unable to pay the remaining mortgage. The seller cannot make any profit from this transaction.
  5. Make an Offer: An offer must satisfy the lender and reduce their loss while still allowing you to see some returns. Illinois law requires that mortgage holders respond within 90 days to any qualified buyer’s written request for short sale approval.

Contact Adam Diamond Law for help with your short sale

At Adam Diamond Law, we take the time to understand your unique situation and help you make the best real estate decisions for you and your loved ones. Contact us at 773-217-9623, so we can get started working together on your short sale as soon as possible.

DISCLAIMER: Any information contained herein is solely for informational purposes. While it is important that you educate yourself, nothing herein should be construed as legal advice or create an attorney-client relationship. For specific questions, [I] always urge you to contact a local attorney for advice pertaining to your specific legal needs.

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