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Lake County short sale attorneysIf you are behind on your mortgage payments, you know just how stressful it can be. You may end up losing sleep because you are worried about what will happen to your home. If you owe more on the home than it is worth, you may be a risk of foreclosure. In situations like these, one option that many people find preferable to foreclosure is a short sale.

During a short sale, a home is sold for less than what the owner owns on the home. Additionally, the lender generally agrees to accept less than the amount owed by the borrower by means of a the short sale. This option comes with certain advantages, as well as some disadvantages. If you are concerned that your home may be foreclosed on, a qualified foreclosure lawyer can help you determine whether or not a short sale may be right for you.

Short Selling to Avoid Foreclosure

Research shows that approximately one in every 1,380 Illinois homes is foreclosed on. Foreclosure can be an extremely stressful and embarrassing process to endure. Although foreclosure can happen to anyone, many people feel a great deal of shame regarding foreclosure. The greatest benefit of a short sale is that it can allow you to avoid foreclosure. When a you have a foreclosure in his or her credit history, you will not be eligible for another mortgage for a minimum of seven years. However, this waiting period may be as short as two years if the home is sold through a short sale.

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Libertyville foreclosure defense attorneysThere is no question that it can be extremely scary to face an imminent foreclosure. If you are substantially behind on your mortgage, you probably know that foreclosure is a possibility, but things will get all too real when you receive notice that your lender has initiated foreclosure proceedings. Unfortunately, the seriousness of the situation leads many homeowners to become overwhelmed—which often leads to avoidable mistakes. A qualified foreclosure defense lawyer can help you avoid some of the most common mistakes and protect your family’s future.

Mistake #1: Ignoring Notices

Perhaps the biggest mistake that you could make if you are delinquent on your mortgage is to ignore attempts at communication by your lender. Your lender will most likely call and send notices in the mail as soon as you miss a single payment. You might be embarrassed by your situation, but avoiding communication will not get you anywhere. There is a good chance your lender has options available for rehabilitating your loan or other avenues to help you avoid foreclosure altogether.

Mistake #2: Giving Up Immediately

Many homeowners believe that once their lender initiates foreclosure proceedings, they will automatically forfeit their home. This is simply not true. In Illinois, all foreclosures are handled through the court system, which can be notoriously slow. In the meantime, you and your attorney can continue negotiating with your lender to resolve the situation. You might not have as many options as you did before the lender filed, but you will have still have the chance to work things out and keep your home.

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Lake County foreclosure attorneysIf you are behind on your mortgage payments and you owe more than your home is worth, you may be wondering what will happen next. One option which may be advantageous to you and your family is a “short sale.” A short sale occurs when a home is sold for an amount of money that is less than what the owner still owes on the mortgage. Short sales are often used to avoid foreclosure. Having your home foreclosed on is not only extremely stressful but can also result in significant damage to your credit score. Some people who experience foreclosure are even forced to file for bankruptcy. A short sale is not right in every situation, but there are several advantages to short selling of which you should be aware.

Avoiding the Stigma of Foreclosure and Remain in Control of Who Gets Your Home

Life does not always go according to plan and foreclosure can happen to anyone. One out of every 2541 residences in the United States is in some stage of the foreclosure process. In Illinois, that number is one out of every 1381 residences, nearly double the national average. Dealing with foreclosure on is not necessarily something to be ashamed of, however many people who experience foreclosure do feel embarrassed when friends and neighbors find out about it.

Short selling your home is a one way to avoid the stigma associated with foreclosure. Furthermore, because you are selling your home, you maintain control over the sale. You ultimately get to decide who gains ownership of your home instead of the bank making this decision.

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Waukegan short sale attorneysFalling behind on your mortgage can be a source of tremendous anxiety. Most homebuyers are fully aware that failing to make mortgage payments will eventually result in the lender foreclosing on the loan, seizing the home, and selling it at auction. If you are currently struggling to stay current on your mortgage payments, or if your lender has initiated foreclosure proceedings, you might be able to negotiate a short sale, which could allow you to avoid several unpleasant realities.

What Is a Short Sale?

In simple terms, a short sale is the sale of property for a price that is less than what the owner owes on his or her mortgage. Before a short sale can be completed, the lender must agree to the sale. Additionally, in most cases, the lender will agree to accept the proceeds of the sale and forgive any shortfall between the sale price and the remaining balance of the mortgage. For example, if you have $200,000 left on your mortgage but the most you could get for your home right now is $175,000, you would be $25,000 “short.” You would need to convince your lender that this is the best you can do so that the lender will agree not to come after you for the remaining $25,000.

Benefits of a Short Sale

It is important to understand that the logistics of a short sale are much like those of any other residential real estate transaction. You, as the owner, are responsible for getting the house listed, inspected, repaired, etc.—just as you would be if you were not upside down on your mortgage. While this might seem overwhelming, it also means that you are in control of the sale. You get to choose the offers to which you respond and, ultimately, who buys your house. In doing so, you get sell your home with respect and dignity while avoiding the dreaded stigma of foreclosure.

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Libertyville short sale attorneysOver the last several years, the nation’s economy has shown steady signs of improvement, but there is still a long way to go in many areas. When people go through tough financial times, some may find it necessary to sell what they own for far less than those assets are worth. In some cases, even applies to residential real estate in some cases. When a property is sold for a price that is less than the amount remaining on the mortgage, the transaction is known as a short sale.

Four Requirements for a Short Sale

A short sale is often a complex undertaking for several reasons. First, selling a house is almost always complicated. Next, since the sale price in a short sale is less than what the owner owes on his or her mortgage, the remaining amount of the loan must be taken into account. Finally, a short sale can only work if each party involved is on the same page regarding the transaction. The most difficult part of the process is often convincing the lender to allow the sale.

Obtaining a lender’s permission to allow a short sale usually requires four particular items, including:

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