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Short Sales 101
It’s an emotional subject, usually because the conversation surrounding a short sale is one of despair, embarrassment, and fatigue. But it’s a conversation that needs to be had, and it can be a life-changing event… for the better.
If you’ve Googled “Short Sale” (go ahead, try it), you first get Wikipedia, and then a slew of online articles, blogs, and general information regarding short sales. While there is a plethora of information on short sales on the web, there is an overwhelming amount of mis-information. Each week I talk with new clients and other real estate professionals, and I’m amazed at the bundle of wrong info and data that exists and proliferates. There are many well-versed and experienced professionals that deal with short sales, but there are just as many that don’t have experience and that are passing on incorrect information.
That being said, I’m going to start a blog series I’ve titled Short Sales 101 (creative, I know). Why am I qualified? To keep it short, I’ve taken nearly every class, seminar, and attended conferences. In 2008 I shadowed an agent who was already on top of the short sale process, and I began taking my own clients. I’ve worked with over 15 attorneys and short sale companies. But most importantly, I have immense first-hand experience of negotiating for clients. Most recently, in order to better serve the clients I represent, I’ve formed my own team, THE CHICAGO SHORT SALE TEAM.
This is Episode 1, and since I’ve already taken your time, this is a quick and easy one.
WHAT IS A SHORT SALE?
A short sale occurs when a lender agrees to accept less than the amount owed to payoff a loan as an alternative to foreclosure. This typically happens when an owner must sell, for various reasons, and the property value is less than the amount owed on the loan. The sellers do not have the financial resources to make up the difference by bringing funds to close the transaction, so the short payoff is negotiated with, and accepted by, the seller’s lender(s).
In later posts we’ll talk about eligibility, average timelines, repercussions, and how to interview and select a short sale professional with whom to team up. Each owner’s situation is different, and each situation has it’s own emotional burden. But it’s important to reach out to a local real estate professional for help early in order to avoid the devastating effects of foreclosure.
Stay tuned for next the episode…
