Home Selling in Chicago>Question Details

sharacarlton…, Home Buyer in Chicago, IL

I have a property with an upside down mortgage and would like to sell it. What are my best options?

Asked by sharacarlton1986, Chicago, IL Fri Apr 5, 2013

Help the community by answering this question:


Ivan Sagel’s answer

Here are your options from best to worst for your credit:

1: Sell it and bring cash to closing to cover the difference
2: Refinance to get a lower payment and rent the property out, I have a property management company I can refer you to that can take care of all the details.
3: Do a short sale, I have experience and success with short sales.
4: Give the home to the bank via deed in lieu of forclosure
5: GIve the home to the bank via foreclosure

Feel free to reach out to me to discuss details.

Best regards,

Ivan Sagel

I always appreciate your referrals…
2 votes Thank Flag Link Fri Apr 5, 2013
When you sell your home- if it is encumbered by a mortgage- you must pay off the lender who owns that mortgage in full before they will release their interest in the property and let you close.

If you don't have enough equity in your home you have a few options:

1) Write a check. If you own a home worth $100K and you owe $200K you would need to write a check for $100K at closing to close.

2) Compete a short sale. Likely your best option, as if your bank approves you will be allowed to close without having to come up with all that cash

3) Keep the home and wait. Depending on where you live and what you own this could take anywhere from a couple to dozens of years before you'll break even.

4) Let the home go. Let the home go to foreclosure. This is terrible for your credit and will significantly impact your life for around a decade.

You need a competent professional who knows your rights and options and I would be happy to help. I complete dozens of short sales every year and by the time we hang up the phone I can promise you will be impowered with the information you need to make an informed decision.

Reach out via phone at 773-313-3781 and ask for my assistant Jenny Torres. If you want detailed info on short sales check out my blog.
1 vote Thank Flag Link Mon Apr 8, 2013
There are really only two:
Short sale- if you can prove a hardship and are willing to take the hit on your credit (plus 100 points at a minimum). This will get yo out, but will also keep you from obtaining another mortgage for at least 24 months. we can talk more about the hardship part, but you should assume you will have to show you have no ability to bring the shortfall to the closing table.
Sell and pay- you sell for the best price possible, and you pay the balance to the bank. You may be able to negotiate some of this, you might even be able to get a note for the amount you owe and pay over time. Generally speaking this will be the route to take if you want to preserve your credit and ability to buy again now.

What you need is a full interview with someone who knows this process on the Realtor side, as well as a negotiator who knows what your lender's process is like for a short sale. We do this all the time.

1 vote Thank Flag Link Fri Apr 5, 2013
A lease with an option to buy in the future may be a solution, if you can't get approved for a short sale.

A lot of home owners are leery of becoming landlords, and for good reason. My company educates home owners about risk management for issues such as:

- Malicious damage done by the tenant
- Frivolous lawsuits (or valid ones)
- Default of lease

We work with a company that provides coverage in all areas, including up to 6 months of lease payments, should the tenant default on the lease.
Web Reference: http://www.JVAmerica.com
0 votes Thank Flag Link Wed Dec 3, 2014
Hello Shara,

Two words: Short Sell

Short Selling has become easier since you no longer need to stop making payments. In addition, banks are responding in half the time as a couple years ago.

I have helped a number of clients short sale. Just let me know if you would like some help.

John Meyers, Meyers Realty
e: JohnMeyers@MeyersRealty1.com
c: 847-533-7115
0 votes Thank Flag Link Thu Nov 28, 2013
First thing i will call the bank to see what options they can offer you in your particular situation !
0 votes Thank Flag Link Mon Sep 23, 2013
If you have Chase bank , citi bank , Wells Fargo , you can sell it , and you dont need to be behind in your payments in a Shortsale .

If you have Chase , citi or Wells fargo , you may be getting until $20,000 in the closing for an incentive from these banks
Email me for more info at BarcelonaRealtor@gmail.com
And you dont have to pay for commissions and taxes
0 votes Thank Flag Link Mon Sep 23, 2013
Contact a local Realtor and go over the different options. They will need to meet with you and review your property.
0 votes Thank Flag Link Mon Sep 23, 2013
Your best option might be to try a short sale on your property:

A short sale is not the same thing as a foreclosure. In fact, the two processes operate separate and apart from each other. If a seller is facing foreclosure, it is almost always in their best interest to attempt a short sale with the bank. While working to complete your short sale with your Realtor, your attorney, and the bank, the foreclosure process will continue on its own, but generally speaking, a short sale takes much less time than a foreclosure. A short sale will typically have less of an impact on your credit score than a foreclosure, as well. A foreclosure is considered a judgment against you and will stay on your credit report for 10 years. A short sale is considered “settling a debt for less than is owed” and, as with most other negative trade lines, will come off of your credit report in seven years.

You will need to prove a financial hardship in order for the bank to consider the short sale. If you have a lot of money sitting in your checking account and are just looking for the lender to take the loss on the property, a short sale is not for you. The most common hardships are:

Reduction in income or loss of employment
Divorce or legal separation
Death of a family member, illness, or significant medical bills
Relocation or job transfer
Major repairs needed on the property, without financial resources to pay for them
Active Duty Military Transfer

Contact me if you would like to chat about performing a short sale on your house. In any case, good luck!
0 votes Thank Flag Link Fri Apr 19, 2013
email me at jmichaels@remax.net we specialize in your situation
0 votes Thank Flag Link Sun Apr 14, 2013
Wow! plenty of great answers. Some banks are now offering principal reductions, I would explore that option first before short selling.

Jose Hernandez
0 votes Thank Flag Link Sun Apr 14, 2013
Sounds like you have lots of input from locals - at a glance I liked Newman-Mitrick RE Group's answer best... Good luck
0 votes Thank Flag Link Fri Apr 12, 2013
Here is an article which tries to explain why a short sale might be the better option:

Web Reference: http://www.realtypin.com
0 votes Thank Flag Link Thu Apr 11, 2013
0 votes Thank Flag Link Wed Apr 10, 2013
one option is to email me at jmichaels@remax.net to assess your situation for a solution
0 votes Thank Flag Link Wed Apr 10, 2013
Are you sure you don't want to keep the house? Home values are on the rise and inventory is low. If you want to keep it, you should try to get a loan modification through your lender. If that is not successful, and you decide to sell it, you should go for a short sale.

Make sure you get an agent who has a lot of experience in getting short sales approved since that is a long process. Make sure your agent explains how a short sale can affect your credit and other short and long term buying capability.

Meena Gujral
Help-U-Sell Achievers Realty
0 votes Thank Flag Link Wed Apr 10, 2013
The short sales that don’t close in some cases are because fraud (Buyer related to seller ,including friends) , predator attorneys over charging banks and buyers that want to buy short sale privately

Visit http://www.lisamadigan.org

Los short sale venta corta que no suelen cerrar suele ser debido a varios factores incluyendo pero no solo a Fraudulentos abogados intentando sobre cargar a los bancos , y compradores demasiado interesados de una forma anormal sin sentido intentando monopolizar y privatizar el shortsale unilateralmente
0 votes Thank Flag Link Sun Apr 7, 2013
I am willing to buy your home in a short sale! Email me at Brianandjulieb@aol.com.
0 votes Thank Flag Link Sun Apr 7, 2013
Hi Shara,

Sounds like a short sale is your best option. Last 2 short sales i listed I got them both under contract within 24 hours and had multiple offers.

If you like these results call me, otherwise good luck!
0 votes Thank Flag Link Sat Apr 6, 2013
Well, you may want to read my article on "How to Avoid Foreclosure by Short Selling Your Home." You'll find it here on Trulia as well as http://www.ShortSalesNews.net. Next, you would be better served to find a Real Estate Broker in the same area as the subject property who is experienced in Short Sales - and can get the job done. Anyone can list it, you want someone who can market, sell, negotiate, and close it. Good Luck!
0 votes Thank Flag Link Fri Apr 5, 2013
sharacarlton1986 - call me and I can help you if you would like to do a shortsale on your house.

Tony Guisto
Solid Solutions Real Estate and Investmetns, Inc.
0 votes Thank Flag Link Fri Apr 5, 2013
You may have a number of different solutions for your situation, how much are you upside down, how much could you potentially sell the property in today's market, will you need to do some improvements, like cleaning carpets or painting, can you sell and bring money to the closing?
If not then a short sale may be a good solution, but you need to connect with your lender to see what
they would accept, and if they would accept a short sale.

You could certainly also consider renting, if you can at a rent that would cover your expenses. So for
all those choices and considerations you should really sit down with an experienced Realtor in your area,
discuss the current value of the property and then discuss with the lender if they would accept a short sale and what they would accept....

If you need a good agent who has expertise in short sales, get back here and I gladly send one your way actually Ivan Sagel from my real estate brokerage is offering you his services, why not contact
Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert

Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE 
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties ---- EdithSellsHomes@gmail.com
Check out my website at htttp://tinyurl.com/YourRealtor4Life
0 votes Thank Flag Link Fri Apr 5, 2013
We deal with a lot of clients in your situation. Give me a call so we can discuss. 773.610.9054 you can also visit our website http://www.chicagolandshortsale.com
0 votes Thank Flag Link Fri Apr 5, 2013
First you would need to contact your lender.
Lender will let you know what they will require for a short sale.
You should also find a realtor who would be able to give you a current estimate value of your property and also help you sell it. Realtors can ussually refer you to an attorney who specializes in short sales.
0 votes Thank Flag Link Fri Apr 5, 2013
Erik Miles is great lawyer who will likely give you an initial consultation for free.

Give him a call at 312-854-8092 or email him at Miles@LawFirmMiles.com
0 votes Thank Flag Link Fri Apr 5, 2013
A short sale is probably your best option. Visit The Short Sale Specialist and Short Sale Superstars websites - you will find an amazing amount of information.
0 votes Thank Flag Link Fri Apr 5, 2013
Please visit http://www.24ShortSale.com. There is alot of information on Short Sales here.
0 votes Thank Flag Link Fri Apr 5, 2013
If you really want to sell then you must Short Sale the property.

If you want to stay you may qualify for a HARP Loan and/or Loan Modification

Or possibly Rent it? ...if the income will be enough to cover your costs.
0 votes Thank Flag Link Fri Apr 5, 2013
Do a shortsale . I close more than 100 shortsales recently with no problem , you dont have to pay anything and you walk Away

I can connect you with sellers you can talk with them about their experiences with my team

If you have Chase - Bank of America... maybe elegible for +20k (depend of factors )

The average time for a Shortsale is about 45 days to 90 days

Good luck

Yo realizaria un short sale venta corta , debido a que varias leyes aplican y protegen al vendedor como el no tener que pagar taxas ganaciales .
Si realizas un short sale venta corta con algunos bancos te pueden dar un incentivo de mas de 20k , dependiendo de factores internos i guias internas del banco .

0 votes Thank Flag Link Fri Apr 5, 2013
Best thing to do is short sell it. I would always seek the advice of an experienced real estate attorney first. If you would like to speak with a couple please feel free to call me. Good luck
0 votes Thank Flag Link Fri Apr 5, 2013
It depends upon whether or not you have assets to cover the shortfall. If you don't you may qualify for a short sale but it will take some work. If you do have the assets it becomes more complicated. I have worked with an attorney before that has been successful in getting short sales approved for people with assets with no deficiency judgment. But past results are no guarantee of future performance.

If you would like to talk further you can call me at 312-738-0232.
Web Reference: http://LucidRealty.com
0 votes Thank Flag Link Fri Apr 5, 2013
You should speak with an experienced lawyer on short selling your property.
0 votes Thank Flag Link Fri Apr 5, 2013
Try to refinance or loan modification with your lender or sell as a short sale or rent and waiit for the market to change. It has already started to change. Perhaps have an agent do a market analysis to see what prices might be.
0 votes Thank Flag Link Fri Apr 5, 2013
Dear Home Owner,

If it is an FHA, Fannie Mae or Freddie Mac and you have a job you may qualify under the new rules to refinance to a lower rate without an appraisal. Reach out to a mortgage lender first. I recommend Mary Kay Laurent at Guaranteed Rate 773-516-6859.

If you are unable to refinance at lower rates my second choice would be to short sale. Personally I use an attorney to take of the bank and I concentrate on the sale side. The attorney I recommend takes no monies. They get paid at the closing from the bank and that is why they make sure your property gets closed.

If I can help you in anyway feel free to contact me.

Best of luck.
0 votes Thank Flag Link Fri Apr 5, 2013
you can not sell a property for less than it is worth without the mortgage holder approval. they will approve a short sale if you have a 3rd party professional who is certified like me help you.. please come to my office/ email me and lets get started.. I have the most experience to get you the best solution with the least cost ..it will take about 7-15 months
0 votes Thank Flag Link Fri Apr 5, 2013
If you qualify a short sale is definitely the best option. Give me a call or send me an email and we can discuss your situation.
0 votes Thank Flag Link Fri Apr 5, 2013
If you do not have the cash to pay off the balance after a sale, a short sale may be best. You should start by hiring a local and experienced listing agent who can help you obtain the value of your home to see what is owed after obtaining your payoff. They can assist whether a short sale is for you.
0 votes Thank Flag Link Fri Apr 5, 2013
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