Until this year, I had never been involved in a short sale. Now, I have good friends who purchased a condo in a conversion in 2005 and have since seen the interest rate on their loan reset to an excessive rate (over 9%) and the husband lose his job. My team and I at Coldwell Banker have been trying to help them sell their condo for a price in excess of their mortgage amount but have received no offers. So, just last week, we canceled and relisted their home at a price that is more than 10% below the principal balance on their mortgage. When we get a buyer, we will work with Peter to contact their lender and negotiate a short sale.
Given that short sales are becoming more frequent in our Chicago area residential market, I asked Peter if he would consider writing a guest post for the blog that I could share with our readers. If you’re considering a short sale yourself or are just curious about this arrangement that has been grabbing headlines, you will find Peter’s post very helpful.