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There is no One Size Fits All approach for a solution to an individualized problem. The Orrico’s stress that you do not have to lose your home to foreclosure. A short sale can be a viable option if you are facing foreclosure or you cannot negotiate with your lender to work out a repayment plan or loan modification.
Many consider a short sale better in the long run for homeowners because it helps avoid foreclosure. A foreclosure will damage a person’s credit score and make it much harder for them to buy another home in the future. A foreclosure will stay on your credit report for at least 10 years as it is a “court action” similar to bankruptcy.
The short sale process will require some legal counsel along the way, but it is minimal in most cases. The Orrico team recommends that homeowners consult a tax professional for any questions they have concerning tax consequences. There are many new laws in effect like the Mortgage Debt Relief Act.
Ultimately, for a short sale to be approved, you must prove to the lender that you are in danger of losing your home to foreclosure. Some examples are due to something beyond your control such as job loss or illness. In most cases, completing a short sale is usually a much better option than foreclosure when it comes to the impact on your credit history.
Working with a short sale certified REALTOR® will be ideal for the homeowner. Most agents know how to list a home but have not had extensive training or necessary experience to get the deal closed. Professional Residential Brokerage, LLC has the qualifications along with local knowledge of the real estate market.
It is crucial to have an educated negotiator in today’s current market values. Most failures are from hiring an agent that has no knowledge of Illinois property values. The comparable properties which have sold in your neighborhood in the last 3-4 months will determine the price that the lender will accept. A well-versed negotiator will determine local market values. Moreover, provide current data through comparable sold properties near the subject property.
The Orrico team suggest that the homeowner contact a REALTOR® before they are delinquent three months on their mortgage. On the contrary, a homeowner does not have to be late on their mortgage payments to qualify. If you receive a Foreclosure notice, it does not mean it is too late. In the state of Illinois, you have ample time to complete a short sale while in the foreclosure process if you act promptly.
The Orrico’s are Chicagoland’s industry leaders for Short Sales!
After successfully negotiating 100’s of short sales, the Orrico’s will assist in negotiations with your lender while placing your property on the market. Going forward, this is the very beginning of the short sale process. Remember, we are trying to prevent a foreclosure to save the credit rating for the homeowner. We are here to relieve your fears and support you.
During the listing process, we will start at a suggested marketing price to attract a buyer and a contract to purchase. We may have to lower the asking price as needed to secure a buyer over the listing term. The contract will be submitted along with the entire short sale packet once the contract is accepted and signed off the homeowner.
The short sale packet may consist of some of the following items: financial statements, banks statements, hardship letter and pay stubs just to name a few. Each lender has different requirements; we are here to help you navigate through this process.
We go to work to make sure the lender has the facts on the local market as well as submit your information so the lender approval process can get started. Typically, a short sale is approved by the lender within 120 days of sending the packet. On occasion, it will be a longer approval process when there is a GSE (government backed entity) as the investor.
We will continue to monitor the process from start to finish and keep everyone involved of our progress which is essential. Our goal is to have a successful short sale transaction in which the seller can then move forward with their lives.