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"8 Steps to Negotiating A Successful Short Sale and Avoiding Foreclosure."

Did you receive a Notice of Foreclosure?

Are you behind on mortgage payments?

Do you need to sell your home, but can't?

Read below or call me to discuss your specific situation. You have options, but time is limited.

What options do I have?

This answer depends on many specific factors such as how many payments you have missed, if you have been speaking to the bank to find a resolution, along with many other factors. Most will try to do a loan modification as a first step. If that fails, then either a short sale or Deed in Lieu, might be the next best option. Read below for more information specifically on short sales.

How does a short sale work?

A short sale is when the amount of the outstanding loans is greater than the amount for which the home could currently sell. This can be due to many causes, but often is a result of a rapidly declining real estate market.

Short sales may be a way for homeowners to avoid foreclosure and get out from under their loan with the lender by settling or forgiving the debt.



Short Sale vs foreclosure?

There are options for homeowners that feel stuck to their homes. It is best to discuss with an attorney that has experience with these situations. You can also find some helpful information from the following websites:

Homeownership.org - Non-Profit Help for Homeowners

Making Home Affordable by Department of Treasury & HUD

Where will I live?

This is probably the most important question that goes overlooked! Most clients rent a home nearby while their credit is restored. Cambium Realty frequently lists homes for rent and can guide you through the rental process. There are many VERY NICE homes for rent, whether through our office or elsewhere. Many homeowners realize lower monthly expenses with a comparable home by renting. Most feel relieved of no longer being underwater on their home AND have extra money each month due to lower household bills!

How to do a short sale?

First, work with an experienced short sale Realtor and short sale Attorney. Daniel Shafron is the Managing Broker at Cambium Realty and a Certified Short Sale and Foreclosure Resource Realtor located in Plainfield, Illinois. He has helped both buyers and sellers navigate the complicated short sale process. Cambium Realty has teamed up with an experienced short sale lawyer to aid in foreclosure prevention.

Short sale services are FREE to the seller AND in many cases you can be reimbursed for moving expenses. Closing costs, Realtor commission, and Attorney Fees are almost always covered by the lenders at closing.

Cambium Realty requires NO UPFRONT charges, and only get paid if you successfully complete your short sale. There is NO NEED for a third party "negotiator".

We take the same care and effort to properly list your home for sale AND negotiate with the bank to submit the short sale package and write a compelling short sale hardship letter. Just look at our current and past listings to see how we have helped others.


Call or email us for a Confidential and No Obligation Foreclosure Assistance Consultation for your specific situation. Contact us today to find out how Cambium Realty can help.


Short sales can often have the least negative impact on your credit AND there are many government programs such as HAFA making this your most favorable option when compared to foreclosure and Deed in Lieu of Foreclosure.



Short Sale Information & FAQ Section:

Do I have to be late with mortgage payments to do a short sale?

Every situation is different, but with a valid hardship, you can start the short sale process and have minimal affect on your credit.

I just received a foreclosure notice, is it too late for foreclosure prevention?

NO, but the sooner you begin the short sale process, the higher your chances are of completing the sale before they follow through and avoid foreclosure.

Does it cost anything to try to short sale my home?

In almost all cases, NO. Fees associated with short selling your home are paid at closing once a buyer is found and the bank approves the sale. An initial discussion with an attorney experienced with short sales will review your specific situation and hardship and advise you whether a short sale is feasible.

What is a "hardship"?

· Reduced income

· Divorce

· Disability

· Job relocation/Transfer/ Job Loss

· Military duty

· Incarceration

· Failed business

· Illness

· Increased Mortgage payment (ARM/Interest Only) beyond your level of affordability

· Increased Debt out of your control (i.e. Medical Bills or similar major contributor)

· Unacceptable Debt to Income - If your debt to income is higher than their standards, they might allow a short sale based on this alone. Their concern is if your mortgage debt is too high, you are at high risk of foreclosure if any of the above situations occurs and this would be a foreclosure prevention step.

“I’m upside down on my mortgage” is not a hardship. This means that just because your neighbor’s similar home sold for less than you owe on yours that by itself is not a hardship. To have a short sale approved, you must be able to provide proof of one of the above or similar hardships.

Why is a short sale better than a foreclosure?

While a short sale does negatively affect your credit, it does so much less than a foreclosure. Typically a short sale will drop your credit by 50 points and only remain on your credit report for 6 to 18 months, where a foreclosure can drop your credit 200 or more points and stay on your credit report for up to 10 years. ALSO, a foreclosure can limit your security clearances with certain government and security positions.

Short sales often have the least out of pocket expense to the homeowner or seller when compared to Deed in Lieu or Foreclosure. Since most expenses such as Realtor commission, Attorney Fees, and closing costs are paid by the seller's bank, the seller's expenses are low. Where Deed in Lieu, though there are no Realtor commissions, the Attorney fees and outstanding liens are usually paid by the seller out of pocket.

The bank typically prefers a short sale over a foreclosure, due to the reduced holding costs carried by the bank. It is often considered a win-win for those involved when compared to foreclosure.

Can I purchase another home after doing a short sale?

In some cases, you will be able to purchase a home immediately after a short sale. Often FHA financing requires 2 to 3 years of waiting to purchase another home after a short sale. Homeowners who remain current on their mortgages and have a short sale approved, have the highest likelihood of purchasing their next home sooner. An important note, if your hardship is "unable to make payments due to high debt to income", and you immediately buy another home with larger expenses, you would likely be committing mortgage fraud and could face steep penalties. It is best to speak with an experienced attorney regarding this issue. The banks are constantly changing their rules on this subject, so it is best to check with an experienced mortgage broker for up to date information.

How long does it take to complete a short sale?

It depends, though with the new HAFA program, it can be 60 to 90 days. For non HAFA programs, it can be between 2 and 6 months from the time the bank is submitted an offer. The wide range in time varies due to the banks internal processing speed, sellers involvement, and outstanding liens.

 

What can cause problems with the short sale?

There are many sources of problems with closing short sales, which is why it is important to hire a qualified team to help navigate your short sale. Here are some common issues:

Poor Marketing - Homes listed poorly with dark images will not attract the largest amount of buyers.

Poorly prepared homes for showing - It may feel difficult to put effort into a home that you just want to get rid of, but you are selling this to another person who will make it their home. Showing the home while clean and tidy will attract more buyers and increase your chance of a favorable offer, and a favorable offer has a higher chance of getting approved by the bank.

Unpaid Homeowners association dues - Sellers banks have been known to cover many expenses, but unpaid homeowners association dues (HOA) are almost never paid for by the bank, and therefore should be kept current as best as possible.

Incomplete short sale package - It is very important to submit a complete short sale packet that is custom to the individual banks requirements. Each bank has their own proprietary requirements.

Lack of Follow up with the lenders - Cambium Realty has a proprietary transaction tracking process to keep all parties informed of the status of their short sale approval.


Feel free to contact us for help with your short sale in Plainfield or surrounding areas such as Naperville, Oswego, Aurora, Wheaton. No obligation and strictly confidential.  

 

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