• Illinois State Bar Association
  • Chicago Realtors
  • The Chicago Bar Association

Short Sales

See Something Different On The Horizon:

Hope And Recovery. 

It’s bad enough to be facing a foreclosure lawsuit that threatens to destroy your credit as you see your property auctioned off. Yet, to add insult to injury, if the bank auctions off your property and, for example, sells it for $80,000 when you owe $100,000 in mortgage payments, you’ll also be left with a $20,000 personal deficiency – and that’s collectible.

Suddenly, in addition to taking your house after a sale, the bank can potentially pursue you for the remaining amount. No wonder so many people are forced into declaring bankruptcy.

 

Short Sale: An Option With A Brighter Tomorrow.

A short sale is a type of foreclosure settlement whereby the bank agrees to accept less than what it is owed in exchange for waiving the homeowner’s personal deficiency.

For many of our clients at Miles & Gurney, going the short sale route represents a phenomenal alternative, due to three big advantages:

 

  1. An attorney is negotiating with the bank on your behalf to relieve you of personal deficiency.
    By negotiating during a short sale, our attorneys strive to find common ground with the bank so that it accepts the maximum value of auctioning off the property without pursuing the homeowner for the outstanding amount.

  2. Your credit is hurt, but a short sale doesn’t destroy your credit.
    That’s an important difference. While it will likely be hard to buy a new home for the next 2-4 years, the short-term benefit of a short sale is the ability to get back on your feet.

  3. A helping hand with a fresh start at closing.
    If you live in the property that you’re short selling, you stand to potentially receive between $3,000 –10,000 in cash at closing through what’s referred to as relocation assistance or a relocation incentive.

  

ASK THE ATTORNEY:
“I’m already struggling to get out of this hole anyway.
Should I just stop paying my mortgage?”

It’s a common perception that refusal to pay your mortgage is a viable path

as part of your foreclosure defense. It’s not. When you stop making mortgage payments, you are essentially breaching an agreement in accordance with the promissory note you agreed to. You’ll fall into foreclosure, which could bring a variety of very negative outcomes.

You don’t have to put yourself in that kind of situation.

It’s true that in order to be approved for a short sale, you must be behind on your mortgage payments. However, in that event, there are still specific actions that need to taken for your protection and benefit that you're going to need the advice of a highly experienced real estate lawyer for.

It’s understandable that you want to get out from under your mortgage debt due to unforeseen circumstances, but there are foreclosure defense strategies that may alleviate you from greater financial and emotional burden, including a short sale in which the bank may waive your personal financial deficiency.

The sooner you have a conversation with one of our real estate attorneys at Miles & Gurney, the sooner we can explore which of these strategies make the most sense for your current situation.