WEICHERT REALTORS —Frankel & Giles Real Estate has launched a new Short-Sales Division to help home and condominium sellers market their distressed properties during the current economic downturn.
“Housing analysts report that more than 25 percent of Chicago homeowners with mortgage debt are now ‘underwater,’ which means the market value is less than the outstanding loan amount owed the bank or mortgage lender,” noted Britta Rivera, director of sales for WEICHERT REALTORS—Frankel & Giles. “Up to 60 percent of all the sales in the South Loop’s depressed condominium market in recent months were short-sales, and this is why a short-sale specialist team is needed.”
WEICHERT REALTORS—Frankel & Giles joined forces with Home Solutions, Inc., a full service short sale company, and Budzik & Dynia, LLC, attorneys at law, to help counsel owners of distressed property who are considering short-sale strategies.
“We saw the need and wanted to help local residents in financial trouble,” Rivera said. “Our experienced real estate short-sale specialists in conjunction with our short-sale negotiator can assist distressed property sellers and make the transaction virtually seamless. We will evaluate your property, help you avoid foreclosure, and handle all bank negotiations, including legal work, at no cost to you.”
WEICHERT REALTORS—Frankel & Giles Short Sale Division team urges owners who are experiencing the following problems to call at 312-225-9700 today to schedule a free confidential evaluation:
- If you are falling behind on your mortgage payments and are in financial distress.
- If you are “upside down” on your outstanding mortgage amount with debt exceeding the market value of the property.
- If you have lost your job or are experiencing financial hardship.
Here are some additional facts from WEICHERT REALTORS—Frankel & Giles about the short-sale process:
- A short sale only can be completed with the approval of the lender. Before approving a short sale, a lender will typically request a full financial package from the borrower, including pay stubs, tax returns and bank statements.
- A short sale often is less damaging to a borrower’s credit report. Instead of being branded as a delinquent borrower who was dragged though a foreclosure, the credit report could simply read: “Lender settled for less than owed.”
- The tax liability on a short sale is the same as a foreclosure. If the difference between what is owed and what the house sells for is charged off by the bank the borrower may have a federal and state tax liability.
- Credit experts cannot predict the exact effect a short sale will have on the borrower’s credit score. Much depends on borrower’s other outstanding credit-card debt and payment history.
- Another form of debt relief is a deed in lieu of foreclosure. This occurs when the lender accepts a deed of the property from a borrower to satisfy a defaulted loan. This process avoids delay and costs of the foreclosure process. Completing a deed in lieu would allow a borrower to walk away from a property without a foreclosure on the borrower’s credit report.