How foreclosure works

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The foreclosure process will vary with each state.  Each state will have different rules and guidelines.  Some states require that the property be dealt with through the court systems.  Other allow you to proceed with out the court.

Today, we will talk about the foreclosure process in general terms.  If a person who lends you money is not repaid on time, he may foreclose the mortgage.  An officer of the court will then size the property and transfer it to the person who lent you the money.  The mortgage allows the lender to take title of the property in this way as soon as the terms of the mortgage are not met.

But one who forecloses a mortgage must usually put the property up for sale and give the original owner any thing obtained from the foreclosure sale above the value of the mortgage.  The laws of various states provide that the mortgagor may also be allowed the right to redeem the property within a stated period of time after the public sale.

It is highly recommended that you consult with a Chicago Short Sale Agent if you are getting foreclosed up to see if a short sale will be a good option for you.

 

Chicago among the worst foreclosure states

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The state of Illinois is rated the third worst state in the United States suffering foreclosures.  In 2011, Illinois had a rate of 5.4% of foreclosures.  Home prices dropped 29%.  The foreclosure process in Illinois takes about 300 days because it involves the court system.  Judicial foreclosures are handled by the court and usually include filing motions and seeking a final judgment from a judge.

In states that allow nonjudicial foreclosures, the foreclosure process takes less time and are governed by state law and do not require court intervention.  So it is no coincidence that nine of the 11 states with the highest foreclosure rates have judicial only foreclosure process.

That state’s ninety plus day delinquency rate for mortgage payment is 9.2%, the fourth highest in the country.

South Loop Short Sale Condo

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This 1464 S Michigan Avenue, Unit 2203 is a 2 bedroom and 2 bath condo in South Loop that is a available for a short sale.  This is a newer upper floor condo with Lake views.  This condo is on the 22 second floor so there are great view all around.  There is a surround sound system set up in all of the rooms.  All the rooms and balconies in this Chicago short sale unit have access to both the living room and master bedroom.

This short sale unit is being sold as is.  Listed for $250,000.  If you like to see this property please call our Chicago Short Sale Agent at (312) 755-9999.

Short sale townhouse

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Amazing short sale opportunity at this newly constructed townhouse at Parkside of Old Town.  This 2 bedroom plus a den and 3 full size bathrooms located at 512 W Elm Street, Unit O.

This short sale opportunity has a private rooftop with skyline views of the city of Chicago.

Parking: Garage
Master Bedroom: 12X11 Carpet
Living Room: 11X20 Hardwood
Dining Room: COMBO Hardwood
Kitchen: 12X13 Hardwood

This town house is priced at $264,900.  If you like more information on this property please contact our Chicago short sale agent at (312) 755-9999.

Pre-foreclosure property for sale

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Huge penthouse duplex unit with gated parking is available at a pre-foreclosure sale that has the bank’s approved.  The penthouse is located at 2249 W. Monroe.

This is a very spacious unit with 1600 with granite kitchen and a breakfast bar.  The building was built in 2004 and has two walk in closet.

 

The price for half of the duplex is $152,000.  Please call (312) 755-9999 for more information.

Underwater with your property

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The Federal Reserve estimates that there are 3.6 million foreclosures due to take place in the next few years because there are so many properties currently underwater right now.  The question then becomes what should you do if you have home that is value a lot less than you paid (borrowed) for it?  Many people have simply stop paying their mortgage payment.  If you look at it from a business prospective, it makes smart sense.  Don’t get self conscious or the fear of ruining your credit rating come into the picture.

It probably makes more business sense to stop paying and take your hits.  You can repair your credit rating and pay a the extra cost to get a loan down the road to buy a new home.  It doesn’t make sense to keep paying for a house whose value may never come back.  Especially if you can’t afford to make those mortgage payments.

From a credit rating stand point, if you already have your car loan in place then defaulting on your mortgage payment isn’t going to be that big of a deal.  You aren’t going to be making any big purchases in the near future anyways and so long as you continue to keep paying your other bills on time, the hit will be marginal.  A person with otherwise good credit practice can see about an 85 to 100 point drop.   How hard your credit rating gets hit will vary according to each person.

Now to the benefits.  If you default on your loan, you can still stay in the home until they evict you or if the home gets sold in a short sale.  This can take a few months to a few years.  In the mean time, you live mortgage and rent free and afford you the opportunity to save your money for the save money for your security deposit or pay down other debt.  Just put the money that you would have paid towards the mortgage payment to the side.  You will be surprise by how much you manage to save while you live in the home.

Mortgage rate down

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The average rate on a 30 year fixed mortgage hit a new low at 3.91 pct.  The 15 year mortgage is at 3.23 pct.  The 30 year rate reach a new low that was achieved about two weeks ago.  Some believe that the rate could go lower this year but we will have to see if that is true or not.  Still, lower mortgage rates have down little to help the depressed housing market.  It also has not encourage more home building either.  Its also not stopping foreclosure because people are still upside down on their homes – the result of people buying their homes at values that way exceed the current value of their homes today.  Based on these factors the short sale market should continue to rise.

Short sale process

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The short sale process is not easy to understand.  Its best to get a short sale agent to help you maneuver through the process.  First, you need a property where the seller is facing hardship and seller owes more than the home is worth.  The seller who is trying to get out of his property has to contact his bank and submit to them a package of information that will prove his or her hardship and an market analysis of the property around his neighborhood.

The seller than must find a buyer interesting in buying their property.  This is where a short sale agent will be very helpful.  The agent will assist the buyer to get their offer together and work with the bank to get approval.  The process will be long and not fast. Generally, the short sale approval process can take 90 to 120 days.This is why it is important to work with an experience short sale agent in Chicago who is familiar with the process and who can tell you what to expect and what is going on with the Bank.  The Bank is going to want to try to get a price as close to the market value as process.  They aren’t in the business of giving away property.  They will already lose money on the original mortgage loan and are not looking to lose more money.  They are going to want a new buyer who has financial steady .  They are going to solicit broker price opinions (BPO) to make sure they get the best price for their property.

Welcome to Chicago Short Sale Agent

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Welcome to the new home of Chicago Short Sale Agent.  The site where you will get information on short sales.  How to buy and get away from a home that is up side down.  Our agents in Chicago can help maneuver in this tough area of finances and law.