Selling Your Home in Frankfort - What is Your Home Worth?

By
Real Estate Agent with Real People Realty

Selling Your Home in Frankfort

Here are a Few Things to Consider

Though the economic recession hit us hard over the past few years, the numbers of foreclosures are down by 32% as compared to it's peak in December 2010. There are certain cities that's been been flooded by foreclosures and short sales, and for some towns, this fact is not surprising. However, if you're a homeowner in Frankfort looking to sell your home, you may want to consult a real estate professional, prior to listing your property, to get a clear understanding of your local market.

Should I Sell My Home as a General Sale?

The Chart below shows the median listing prices in the area, as well as the percentage of short sales and foreclosures.

Click the Image to Enlarge

Today's Market Trends for Frankfort IL As you can see, the number of regular sales outweighs those that are being sold as a Short Sale or those in Foreclosure. The best way to determine if you should sell your home as a regular sell is to consult with a real estate expert.                                

Should I Sell My Home as a Short Sale

A Few things to Consider if You sell your home "Short".

What is a Short Sale?

A short sale is fairly straightforward. It takes place when the lender allows you to sell your home for less than you owe on your mortgage. In many cases, the lender absorbs the loss, forgiving you of the remaining debt. Short sales have been increasingly popular since they usually cost the lender less than a foreclosure, and the lender can often sell a short sale property for more than a foreclosure property. It’s an arrangement where both parties can limit some of the unpleasant effects associated with not being able to sell a home for the mortgage balance.

How Can You Get a Short Sale?

Lenders have to decide whether or not to sign on to a short sale. Usually, you are required to demonstrate financial hardship before you can receive approval for a short sale. On top of that, some lenders like to see that you have tried to sell the home for a higher price first. Often, you won’t be approved for a short sale unless your home is on the market for at least 90 days. Realize, too, that having a second mortgage can complicate matters – especially if that second mortgage is from a different lender.

Consequences of a Short Sale

Because a short sale is seen as a form of debt forgiveness, there are consequences to taking this action. Your credit score is going to take a hit as a result of your short sale. In some cases, depending on how the lender reports the short sale, your credit score can be impacted almost as much as if you had gone through foreclosure. Be prepared for a lower credit score, which could result in a higher interest rate on your next loan. A lower credit score might also cause other problems. And, while you can still get another mortgage after a short sale, you might have some difficulty finding a lender to agree. Another consequence might have to do with taxes. Right now, the Mortgage Forgiveness Debt Relief Act of 2007 is still in effect. It was going to expire at the end of 2012, but it has been extended to the end of 2013. Normally, a short sale results in the amount forgiven being taxed as income by the IRS. However, with the extension of the Mortgage Forgiveness law in place, you avoid taxes on the forgiven debt. Realize that the Act might not be extended another year, so it might make sense, if you are going to attempt a short sale, to take care of it this year.

For More information about Short Sales, click Here

As you can see, there is a lot to consider when selling your home as a short sale. To get more information on what you should do with your home, call Maikol at Real People Realty, of Frankfort, IL. I am a broker, and am very knowledgeable about the local Frankfort Market. I can be reached at 708.218.3612. Or click here to get current Market Data on Frankfort, IL.

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Topic:
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Illinois Will County Frankfort
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Ambassador
2,123,828
Respect Realty LLC
Respect Realty LLC - Milwaukie, OR
Brokers - Oregon / SW Washington Real Estate

Welcome to Activerain and I hope you are learning a lot and if you ever need any assistance, don't hesitate to check out my blog, email me, call me, I will be glad to help you in any way possible. Also, check out the main page of Activerain and look for the Activerain University tab, there are lots of educational webinars to help you build your business.

Apr 03, 2013 02:31 PM #1
Rainmaker
2,349,466
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

Love the charts and report, hope the folks appreciate the work and use the information to their advantage right

Apr 03, 2013 02:35 PM #2
Ambassador
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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Good Evening, Maikol! Excellent use of your Market Leader site to get this information about for Short Sales vs a General Sale. I just had to hit that Suggest Button for your First post. Very well put together for consumers in your area.

Welcome to Active Rain! You need to teach me how you got all those Likes on your FB Business Page.

Apr 03, 2013 03:04 PM #3
Ambassador
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Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Maikol, wow! What a great first post! Welcome to ActiveRain!

Apr 04, 2013 07:38 AM #4
Rainer
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Maikol Akintonde
Real People Realty - Frankfort, IL
Maikol Akintonde

Thank you so much Todd, Charles, Jerry and Connie.

To receive comments so soon, is very encouraging.  I see that the Active Rain community is very supportive, and it's very much appreciated.

It's great meeting you all and thank you for your encouraging support. 

Apr 04, 2013 12:31 PM #5
Rainmaker
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Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

Maiko, what a great first post and chock full of super information.  Welcome to AR and looking forward to your next post.

Apr 09, 2013 10:12 AM #6
Rainmaker
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Ken's Home Team LLC. | 360.609.0226 | Portland, OR & Vancouver, WA Real Estate Team
Ken's Home Team LLC. - Vancouver, WA
- SOLD IS OUR FAVORITE 4 LETTER WORD -

Welcome to Activerain from from all of us at Ken's Home Team. I think you will find this site to be a wealth of knowledge and referrals. This really is the best real estate blogging and real estate network on the internet. If you have any questions about Activerain, reach out to the wonderful Ambassadors here in the rain. (They are a wealth of knowledge and were picked by the Activerain staff for their williness to help others)

Apr 11, 2013 03:16 PM #7
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Maikol Akintonde
Real People Realty - Frankfort, IL
Maikol Akintonde

Oh WOW!  I had no idea that you had a support team to help us new to the Rain.

 

Thank you Leah, and thank you for sharing Todd!

Apr 12, 2013 01:59 PM #8
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Maikol Akintonde

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