Short Sales Verses Foreclosures

Short Sales are commonly known as pre-foreclosures. In a Short Sale, the seller arranges with their mortgage lender to accept a price that’s less than the amount they owe on the property. Part of the arrangement includes, the lender typically agrees to forgive the rest of the loan. Then the seller doesn’t have to go through a foreclosure, the buyer picks up a property at a discount, and the lender avoids taking on the burden of unloading the property. The one thing you hear about short sales, is they can take up to 6 months, so be prepared to wait. The upside of a short sale is once a contract has been signed by the seller and submitted to the bank; no one can come in and make an offer on the property. There is the possibility of the bank coming back and asking for more money, so make an offer on the property that allows you flexibility. You do not usually have this option with Foreclosures, those are one time shots.

A Foreclosure is the legal proceedings initiated by a creditor to repossess the collateral for loan that is in default. It usually involves a forced sale of the property at public auction or the bank will list with an agent in what is called a bank sale with the proceeds being applied to the mortgage debt. Bank Sales can typically close quickly once an offer has been accepted.

The Old Saying is what is too good to be true is usually the case. Foreclosed Properties in the Northern Illinois area are almost always priced 10% under the current market value. Banks are doing this to force multiple offers from buyers which usually go way over the asking price. They will collect offers for at least a week on foreclosed homes from all buying parties before they will make a decision on which offer to accept. Most of the time, the first offer you make is the final offer you make on foreclosed homes. Unfortunately the Banks have different rules then the rest of us folks. If you are looking to purchase a Foreclosed Northern Illinois Home, do your homework! Work with an agent that knows the process and who is working on your behalf.

For more information on Short Sales and Foreclosures visit my website at www.TodaysChicagoHomes.com and search local Short Sales and Foreclosures.
As a Northern Illinois Realtor out of Koenig & Strey, I can help buyers and sellers with Homes in Northern Illinois. If you need a real estate expert, look no further. Marina Jacobson can help you with all of your needs Contact Me at 847-510-5009 or email me at Marina@MarinaJacobsonHomes.com. Visit my website www.MarinaJacobsonHomes.com for all of your real estate needs.