A short sale listing successfully closed in Highland Park Illinois last week. We all see a lot of short sales on the market - many are a great opportunity for a buyer- but what exactly is a short sale, and how many actually get approved by the bank and go on to close?
A short sale is a sale of Real Estate in which the sale proceeds fall short of the balance owed on the property's loan. The major differences between a short sale and a conventional sale are that the bank is actually involved in accepting their loan short and it also impacts the seller's credit. As property values have dropped, so have the values of people's other assets, and many times a short sale is a way to stop the loss of resources and find a way to move forward into a better suited financial and living arrangement without going into foreclosure, which is a process that transfers the right of home ownership from the homeowner to the bank and has a greater impact on the homeowners credit score for a longer period of time . Currently in Highland Park Illinois, there are over 20 short sale listings, ranging in price from $140,000 to $2,400,000.
I just closed on my listing at 948 Marion in Highland Park Illinois last week after months of hard work. In 2006 I sold 948 Marion to my clients at $1,050,000 - this home was built as a spec home by Orren Pickel, a well respected North Shore builder, in 2005. Last week the home closed short at $840,000.
This was the first short sale listing I had listed it was a great learning experience with a successful ending. How were we able to seal the deal?
Patience, lots of patience... finding the right buyer was only a fraction of the battle. We had to wait for a buyer who would be able to get financing for the house and the bank to approve the sale.
Organization was key -
1. My clients hired a real estate attorney who specializes in short sales.
2. My clients prepared and submitted a hardship letter to the bank along with their financials.
3. Both the attorney and myself had approval to speak directly to the banks involved.
We actually had another offer on the house for more money but the buyers were very anxious and did not enjoy the waiting game - it's very common for a buyer to walk away from a short sale. So when buyer #1 walked away we had a to wait for another offer. Again patience, lots of patience.
When buyer # 2 came along both the attorney and myself were very diligent in staying in touch with the bank and really pushing for the file to get assigned to a negotiator. The process is very tiresome but in order to be considered persistence is key. After many phone, finally being assigned to a negotiator, lots of paperwork and more follow up calls the short sale was approved!!
If you need to sell your home short in Highland Park Illinois and/or surrounding areas give me a call. I have the experience, organization and patience to make it happen.