Short Sales Explained

What is a Short Sale?
A short sale is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property. In this case, if all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished. 

Are You Eligible For A Short Sale?

  • Do you owe as much or more than what your home is worth?
  • Do you have a financial hardship?
  • Are you not able to or soon won't be able to make your mortgage payment?
  • If you answered yes to any of these questions then you are most likely eligible for a short sale.

What Does It Cost?

  • Your mortgage company pays us to represent you
  • The majority of our clients who qualify may receive relocation funds.

Will I Owe Anything After I Sell?

  • We will make sure the lender puts in writing that your debt is settled after the short sale. 
  • This means you will have no further financial obligations to worry about once the home is sold.

How long does a short sale take?

  • Each short sale and lender are different, but a short sale typcially takes 3 to 4 months to complete or more.
  • Once an offer is received and signed, we send it to the bank, along with the seller's short sale package and a prepared HUD. From that point to the time of short sale approval, the average timeline is about 60 to 90 days. It means 30 days to sell + 60 days for approval + 30 days to close escrow = 4 months, on average.


Is a short sale better than foreclosure? 

  • One of the main benefits of a short sale over a foreclosure is the possibility to avoid deficiency judgment. Illinois is a recourse state, which means that after the foreclosure sale of your property the Lender may file a lawsuit and obtain a judgment against you for the difference between the sale price and the total debt you owed them. In most cases when completing a successful short sale the upside down house debt will be removed.
  • While in reality both a short sale and a foreclosure will lower your credit rating, there are some major differences. Letting your home go to foreclosure will cause your credit score to drop by as much as 200 to 300 points. The foreclosure record normally remains on your credit report for 5 to 7 years, making it difficult or often impossible to qualify for financing. The hit from a short sale is typically lighter – often as little as 50-60 points.
  • Your credit rebounds much more quickly with a short sale versus foreclosure. Once the short sale is completed, it will show as "Debt settled for less than full amount due (or similar verbiage)" on your credit report. And you may qualify for new financing in as little as 24 months after re-establishing your "satisfactory credit" standing.


Now's the time to take action. If you are experiencing financial hardship and owe more than your house is worth we can work with you and your lender to try and do a short sale rather than go through foreclosure.