Will County and DuPage County area homeowners who are interested in resolving their foreclosure situationthrough a short sale now have a better option when they chose me to represent them in the sale of their home. I work with an attorney who has a team of 25 foreclosure specialists ready to assist you with the process of selling your home for less than what is owed by your lender at no out of pocket costs to you.
I have come across a lot of pre-foreclosure listings on the MLS recently that will require a short sale with their lender in order to avoid a foreclosure. I've talked to a lot of agents in the process of showing many of these listings, and there is a pretty wide range of how Plainfield real estate agents are handling these short sales.
While I have performed short sales for some of my own listings in the past, I have to say that it is a tedious and time consuming process that I never care to do again. But that's not the only reason I don't like performing short sales. I don't do them anymore because I'm a Realtor, not a loss mitigator or a debt negotiator.
Will and DuPage homeowners in foreclosure now have a better option and more hope of sucessfully having their short sale approved by their lender.
Since the real estate market is so pre-foreclosure and bank owned driven in the Will and DuPage County area, many Realtors are performing short sales out of sheer necessity, but since many Realtors were never trained to perform short sales, the lives of the loss mitigators who are handling these files are overwhelmed with packages that are incomplete or missing information. Loss mitigators work on files that they know they can close, if your short sale package is missing any information it will sit on the "dead" pile for weeks or months before it is even looked at, if ever.
Due to the level of inexperience with short sales by so many Realtors, loss mitigators have come to dread files in which they know they will be negotiating with a Realtor, to the point of being difficult and uncooperative in some situations. If an attorney is handling the documentation, the loss mitigator knows that all of the documentation will be thorough and complete.
I'm not saying that there aren't agents out there who sucessfully perform short sales, but if they are trying to manage more than 2 or 3 short sales at once, they won't be left with much time to actually market your home for sale, or be available to answer your questions or phone calls. Each short sale involves anywhere from 40-55 hours of work to complete depending on the lender.
A professionally negotiated short sale with experienced short sale specialists at no cost to you.
Legal advice from a real estate attorney.
Convenient option of Power of Attorney to avoid having to attend the closing.
Experienced negotiators that are familiar with special circumstances such as 2nd mortgages, liens, and IRS situations.
A professionally marketed property complete with a full MLS description, photos, advertising, virtual tour, and Internet presence.
Q: The benefits of a short sale?
A: You can sell the house and walk away. Credit typically indicates "settled debt". The foreclosure gets dismissed. No deficiency judgment. No bankruptcy.
Q: Will I owe the bank any money?
A: The bank releases and typically writes off the deficiency.
Q: Will I owe any income taxes on the deficiency?
A: No, on December 20, 2007 President Bush signed into law the Mortgage Forgiveness Debt Relief Act of 2007 ensuring that any deficiency written off as part of a short sale will not be taxed.
Q: What about my closing costs? Will I need to bring any money to closing?
A: No. All of your closing costs, the real estate commission, any back taxes owed, attorney fees, title company charges, etc., will be allowed by the lender and subtracted from the sale price.
Q: What if I sign a contract to sell my house and the bank doesn't approve the sale? Will the buyer be mad?
A: The buyer has been informed and understands that that this is a short sale and that your obligations are contingent upon your bank's approval. It is the real estate agent's job to price the property to sell and then meet the banks appraiser at the property.
Q: I owe $600,000 to the bank the but the house will probably sell for $300,000. Will the bank accept such a huge loss?
A: It typically has nothing to do with the loan payoff. It is based on the value of the real estate based upon a bank appraisal of the property.
Q: I have a second mortgage on the this house for $50,000. How is this going to be handled?
A: The property is in foreclosure. The second mortgage holder knows that the first mortgage is in foreclosure because they were served summons and complaint. Therefore, the second mortgage holder will release their lien, but they will need to be paid something. Therefore, when an offer comes in, the Buyers agent will be called and notified that the buyer will need to bring money to closing to release the second mortgage. This will be addressed in the contract addendum.
Q: I owe the IRS money and I think they put a lien on my real estate. How is this handled?
A: Our foreclosure specialists usually get these released without paying the IRS any money. They will do a preliminary title search on the property to determine what is present and what needs to be dealt with prior to the Contract for Purchase and Sale, or what needs to be dealt with during the contract phase.
Q: Does the attorney handling the short sale represent me or the bank?
A: The attorney's office represents the seller, and they welcome your questions. They can be contacted at the office or by cell phone.
Q: Where will the closing take place?
A: There are closing locations throughout the state of Illinois.
Q: I am not going to sell this house for under $300,000!
A: The Realtor will obtain authority to reduce the price each week in order to tell the property quickly. No matter what the property sells for, the seller will not be receiving any proceeds from the sale.
Q: What do you need from me?
A: Financials I.E. last years tax returns, bank statements, check/pay stubs, W-2's and a hardship letter.
If you have any additional questions regarding a short sale, or listing your home in foreclosure for sale, please contact me directly at 630-673-6233 or e-mail me at JT4NZ @ msn.com. I look forward to working with you.
Anyone who planned on using the down payment assitance programs of AmeriDream, etc... had better move quick!
All FHA loans requiring the down payment assistance of a variety of programs better plan on closing prior to September 30th, 2008.
As of October 1st, no down payment assitance programs will qualify for FHA financing. All FHA financing down payment assistance will have to come in the form of a gift via an immediate family member. No matter when the contract was written, all offer must close before September 30th to qualify for the down payment assistance. NO EXCEPTIONS!!!
I have been working with a buyer that will immediately be disqualified if we aren't able to write a qualifying offer by this Friday, August 29th... disappointing to say the least.
If you require down payment assitance, don't delay... you will need to be under contract no later than Friday Sept. 29th to close on your property!
The market has been a little off recently with the amount of foreclosures and pre-foreclosure short sales taking over the real estate market in Plainfield and Naperville, but not all properties in both Plainfield and Naperville are being sold a deep discounts. Buyers always ask me how much they should offer if they want to have their offer accepted by the seller. Sellers likewise ask how much they can expect to be offered for their Plainfield and Naperville properties.
On average over the last 6 months, sellers in Plainfield got about 96% of their asking price for both town homes and single family properties, with the exception of single family homes with 5 or more bedrooms, which got about 94% of their asking price. One reason that the sellers with 5+ bedroom houses may have gotten less than asking price is because it was over priced to begin with. Bedrooms typically add between $7-10K to the value of a house, but not often more than that. Another reason is that there is not as great of a market for homes with more than 4 bedrooms, lessening the interest that buyers would have in a home that may be more than what they need.
In Naperville, it's a similar story but the numbers are down just a bit. For all single family homes available in Naperville that closed in the first 6 months of 2008, the single family home sellers are are closing at about 95% of their asking price with the exception again being the 5+bedroom market. Those homes are fetching about 94% on average. Attached single family homes are fairing a little better with a sale to list price ratio of about 96%. The exception is one 4 bedroom attached single family home that closed at 98% of the asking price, which strangely enough, is converse to the situation with 5+ single family homes in Naperville.
Is the house you are interested in over-priced? Any good Realtor would, and should, pull the neighborhood comps and do a market analysis on the property you are interested in BEFORE you make an offer. Find the true market value before you start negotiating and then go from there.
Owners of exceptionally well kept homes in Plainfield or Naperville that are already priced well may be less willing to negotiate. They know they will sell their home to the next person if you make an offer that is too low. Often these sellers are often willing to wait for a higher priced offer.
Does the property need repairs or have deferred maintenance that needs to be addressed? If so, how much do you think it will cost to repair? Is the house priced accordingly?
Does the property have some kind of functional obsolesce that will make it difficult for you to sell in the future? Power-lines or freight train tracks cutting through the back yard?
How much have similar properties sold for in the neighborhood?
Click on the image on the right to search for Illinois Properties for Sale, or by clicking here:
Under the new housing bill that gives first time home buyers a tax credit, first time home buyers will be eligible for a tax credit for up to 10% of the property up to a maximum of $7,500. In order to qualify a buyer can not have owned a home in the last 3 years.
Here’s how the new first time buyers tax credit works…Married couples who file separately will each get a credit of $3,750, and unmarried couples who file jointly can divide the $7,500 credit between them.
This program is actually a loan that must be paid back over the next 15 years at 0% interest, in the second year of home ownership. A 1st time home buyer who qualified for the whole credit would pay $500 for 15 years or about $41.67 per month.
The credit will only apply to homes bought after April 9,2008 and before July 1, 2009.
High-income home buyers
don't qualify: Eligibility begins phasing out for single filers with
adjusted income of more than $75,000 and $150,000 for joint filers. It
completely phases out at $95,000 for singles and $170,000 for married
couples filing jointly.
While having to pay back the credit over time seems like it dilutes the benefit, many homeowners will enjoy the benefits of a higher tax return. I’m sure the money can be put to good use for home improvements and some of the higher cost home purchases such as appliances and furniture.
Under the new FHA guidelines it just got a little tougher for 1st time buyers to purchase their first home with an FHA loan, but hopefully this new bill will help soften the blow.
Just to be clear, it’s not a credit you have to take if you meet the criteria, but just know that it is available to you.
It’s still a great time to buy a house! If you are in the market to buy or sell a home, or know someone who is, it would be my pleasure to help you with all of your home buying or selling needs in the Plainfield or Naperville area. Call me at 630-673-6233.
I am a licensed real estate agent and Realtor® in Illinois and work in Will and DuPage Counties. I love working with first time home buyers and have experience in the foreclosure market.
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