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V I P REAL ESTATE LTD
3945 S ARCHER AVE
CHICAGO, IL 60632
Phone: (773) 376-5000
Fax: (773) 376-5091
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Short Sale 

- You May Have A Better Way Out -
 
What is a Short Sale?
In real estate, a short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale.
A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, the advantages include avoidance of having a foreclosure on their credit history. Additionally, a short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount.
Short Sale Process: Some of the most common steps
1) List the home
2) Bank authorization forms signed
3) Market the home
4) Complete Short Sale Package to send to bank
5) Find a buyer
6) Send purchase contract, listing agreement, net sheet to bank(s)
7) Negotiate any/all issues with all parties
8) Follow up with bank and gather other bank requested information
9) Finalize short sale with the bank(s)
10) Get adjusted payoff letter from bank(s) for title company.
11) Close the property.

The Mortgage Forgiveness Debt Relief Act of 2007
When the lender decides to forgive all or a portion of a borrower's debt and accept less, the forgiven amount is considered as income for the borrower and is liable to be taxed.
However, after the signing of The Mortgage Forgiveness Debt Relief Act of 2007 by President Bush, amendments have been made to remove such tax liability and allow the borrower and lender to work freely together to find a common solution that is beneficial to both parties. This protection is limited to primary residences so consultation with a tax advisor is necessary ensure that a borrower qualifies.
 Credit Effects:
Short Sale -v- Foreclosure:
Foreclosure:
The foreclosure in Illinois is a Judicial Foreclosure.  This means that the foreclosure must be approved by a Judge.  This means that if a person's home is foreclosed on, that they will actually have a judgment against them on their credit report. 
A foreclosure will remain on a credit report in the public records section for 10 years.  The other issue with the foreclosure is that on loan application (for purchasing a new home), under Declarations, Section VIII it specifically asks a borrower if they have had a property foreclosed upon in the last 7 years.

The other issue with a foreclosure in Illinois is the Deficiency Judgment.  The lender has the right to ask the court for a money judgment against the previous home owner personally.
The last problem is bankruptcy.  The bottom line is that if previous home owner had the money to pay for the home, they would have.
In the end:
The home owner will most likely have judgments (including bankruptcy) and get docked at least 300 points on his or her credit report.
Short Sale:*
The short sale is very different.  A short sale is NOT a judgment.  It is an agreed arrangement between you and the mortgage holder to satisfied your debt.  Also, banks do not generally ask for any of the losses back from the previous home owner.
In the end:
If the home owner does go through a Short Sale and the bank does not request a money judgment, the homeowner's credit will be affected by as little as 100 points. You can potentially buy another home as fast as 2 years.
Your Benefits by going with The VIP Short Sale Group: 
·       Negotiations - We negotiate all of our short sales in house.
·       Experience- We offer you a devoted and experienced Short Sale Team with over 6 years of experienced. Saved over millions of dollars in real estate from foreclosure.   
·       Your credit will recover in as little as 2 years.  This is far better than the 7 to 10 years that most homeowners in your situation will face.
·       You will not have to go in to Foreclosure.  That is what happens to many home sellers that are in your situation.
·       You will not have to go in to Bankruptcy.  This is exactly what will happen to you if you do not have the money to pay the bank back the shortage.
·       You will not have to pay the attorney, title company, appraiser, or your Realtor (us) 1 penny.  Most home sellers still must pay many of these expenses, thus costing them $1000s.
·       Incentive- Receive $3,000 (HAFA Incentive) for relocation assistance
·        You get an entire team to assist you. Not just 1 agent but entire team that works all short sales full time. 
Here at V.I.P we are determined to help our clients and new customers sell their home before it is taken away. We have a dedicated and experienced team that is willing to sell your home as soon as possible.
 
Don’t let the bank force you to foreclosure, call today so we can set up an appointment and help regain your peace of mind!
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