Do You Want to List Your Palatine Real Estate as a Short Sale?
Forecasters are predicting 2011 will be the year of the short sale. I know some people don’t want to hear that, but there is an upside to listing your Palatine home as a short sale.
If you are having financial difficulties and are falling behind on your mortgage on your Palatine home it is very important that you don not avoid your lender. The best thing you can do is communicate with them about your financial situation. Even though contacting them maybe a hard thing to do, your lender may have a few options for you and one of them will most likely be to short sale the home.
A lot of people are still unaware of what a short sale is or what it entitles. A short sale is where you list your home with a licensed Palatine real estate professional, preferably one who is a certified distress property expert. The bank then agrees to sell the home for less than what is owed on the mortgage. For example, you have a $100,000 mortgage and you sell it for $90,000, there is a $10,000 shortage.
Short Sale Qualifications
There are few basic qualifications to be eligible to short sale your Palatine home. You will need to submit a letter of hardship to your lender. You will also need to submit financial documentation such as tax returns. If you have a large amount of assets the bank may not qualify you to short sale your home. Examples of valid hardships are:
3.Medical emergency / sudden illness
Now I bet your wondering “What is upside to selling your Palatine real estate as a short sale i?” Yes, your credit will take a hit, but experts are saying that the number of points lost is less than if you were foreclosed on. A lot of banks are excepting short sales now even if your payments are current as they want to avoid the costliness of foreclosure. The late payments are worse for your credit score than the short selling of you home, so it is highly important to talk to the lender from the very beginning. According to the Fannie Mae website, you should be able to buy another home within 2 years after a short sale, where its 5-7 years when you are foreclosed on. The motivation of living the American dream of home ownership in 2 short years is a huge factor in deciding whether to short sale your Palatine home or not. With good credit behavior it could even be sooner.
We at the Sharron Kelley Team have experience in handling and negotiating short sales. We know how to get the job done timely and effectively to get you back on the path of living your dream. Contact us today to learn more about listing you Palatine real estate as a short sale.