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Tigress25,

I did some research and found 1 home in Elgin within that price range that is a short sale. That home already has a contract on it. It was listed in April, the contract was put in on 5/23 and is still contingent, (probably awaiting bank approval). This will show you that short sales take a while before they are approved.
The deadline for the tax credit is rapidly approaching. A short sale may not be the way to go if you want to take advantage of the tax credit. If you have an agent, they should be able to satisfy any questions you may have. If you need an agent to guide you through this process, i will be happy to help you.
Call me with any further questions.


Mark Risting
Prudential Starck REALTORS
Schaumburg,IL
630-550-1953
mristing@starckrealtors.com

The agent will pull all the comps to the property so you can make a realistic offer. Banks will nego. some but will not be taken advantage of either. SS can take months to close depending on the lender. Have your buyers agent check with the selling agent as to how long the lender is quoting to close.

Hi Tigress25

Before placing an offer I would get with your Realtor to pull comps that have sold in the area over the past 1 - 3 months.

Good luck with a Short Sale. It is not a short process and you might run out of time to use the tax credit.

Short sales are a little bit tricky. Every bank and every situation is different. It really depends on how much the owners owe on their home and if they have multiply mortgages. Can you still negotiate? Of course! You can submit an offer and hope that the lender comes back with a great price but you may not find out for 1-4 months from now. Also, if there is more than 1 mortgage on the property, it may take even longer. If you want to take advantage of the credit, I suggest to look at homes that are not short sales so you can guarantee closing by November 30th. Ideally you should get a place under contract by October 15th.

As far as what to offer. You should have an agent put together a market analysis together. This will give you an idea of whats on the market and what has sold in the area so you can determine a price to offer on the property. Let me know if I can be of any further assistance.

Cherrie Catama
773.490.3437 Phone
cherrie@newmanrealtyillinois.com
newmanrealtyillinois.com

It depends on what the market says the house is worth. If the house is headed for a short sale, then the seller is probably holding out for top dollar. That doesn't mean that they will get it though. What you need to find out is what are similar homes in the area selling for and make your offer accordingly.

If this is headed towards a short sale keep this in mind. Many short sales are taking months to get an answer back let alone close. You are running out of time and a short sale may not be the way to go. It is unknown at this point if they are going to extend the tax credit.

Tigress25,

First off, if you are looking to close by Nov. 30th to take advantage of the $8k credit a short sale is probably not the best property to pursue as the closing date will be less certain.

Regarding priceing, there is no set ratio or formula off a list price. What the bank will ultimately look at is the comparable sales & listings in the immediate area. If other distressed homes that are comparable (location, condition, SQF, bed/bath count, etc) are selling for $250k than the bank should consider offers around this price point regardless of what the list price is.

So I would recommend speaking with a Realtor if you have not already done so & have them run comps for this particular property.