Mike Cohen has an SFR ceritification from the National Association of Realtors for expertise regarding short sales and foreclosures. These are some of the most commonly asked questions regarding distressed properties.
What is a foreclosure?
Foreclosure is the process by which a bank takes back a property from the homeowner due to non-payment of the mortgage. Although the property is ultimately “auctioned” by the sheriff, many properties remain in the possession of the bank and are sold as REO (Real Estate Owned) properties.
What is a short sale?
In a short sale, the seller is still the owner of the home but must negotiate with the bank to accept a price less than what the bank is owed plus the additional expenses such as commissions and attorney fees.
Should I buy a foreclosed property?
A foreclosed property is generally purchased “as is”, has often been vacant for a period of time, and in some cases deliberately damaged by a previous occupant. You must have the money necessary to make repairs and be ready to close quickly. If you have another property to sell first, this is NOT an option.
What about purchasing short sale properties?
You will need to negotiate a price with the seller and wait for lender approval. You should expect to wait at least 90 days and then be prepared to close quickly. The price DOES matter to the seller because it will determine how much he is in the hole in case the lender will not totally forgive the debt. (In Illinois, this is very likely)
I am behind in my payments and I am considering just walking away. What should I do?
Under NO circumstances, walk away. There are many alternatives available to you which are far less damaging to your long term financial health. You may be able to renegotiate your loan as well as facilitate a short sale.
We can help you with distressed properties whether you are a seller or a buyer. Contact us right away at (773) 989-6988. We also recommend you consult with your attorney and financial expert.
Townhouses For Sale Andersonville | Real Estate Agent Andersonville | Edgewater Foreclosures | Luxury Condos Edgewater | Lakefront Property Edgewater | Condos For Sale Andersonville | Edgewater Sellers Agent | Sellers Agent Andersonville