If you have been struggling to pay your mortgage, you are not alone. Thousands of homeowners across the U.S. are in the same situation. The good news is you can come out of this predicament with a short sale.
What Is a Short Sale?
In real estate, a short sale is usually conducted on a property that belongs to a financially distressed homeowner – but for less than the amount due on the mortgage. In other words, the buyer is a third party rather than the bank, but all the money from the sale goes to the lender.
It is up to them whether they wish to overlook the difference or opt for a deficiency judgment against the borrower. However, in the latter case, the value the borrower needs to give should either be all or part of the difference between the sale price and the original price of the property.
In the state of Illinois, no law precludes a deficiency judgment after a short sale. To avoid one, the agreement prepared should explicitly state the lender waives their right to it. If the agreement does not have this waiver, the lender can file a lawsuit to get a judgment.
Benefits of a Short Sale for a Seller
- You Get Closure
While losing your home due to financial issues can be devastating, selling it off quickly through a short sale will take a load off your mind and give you closure. During the proceedings, you will finally have the time to face your new reality and know when you will need to vacate the property.
- You Avoid Foreclosure
By opting for a short sale, you can prevent the bank from foreclosing on your home. This way, you and your family won’t have to vacate the premises right away, and your credit, while not unblemished, will not be as damaged as you thought.
If you are unable to pay your mortgage and think the bank is about to foreclose on your home, the legal professionals at Jackson Abdalla Law Group can help you take the best path for a stable future. You would be guided on the short sale process so you can get back on your feet after the sale quicker as compared to the scenario where your property faces foreclosure. For a FREE consultation, give us a call by calling (773) 550-3853.