Will Short Sales And Foreclosures Increase In 2023?

Foreclosures and short sales may increase significantly in 2023 in Illinois and the US. Home sales are low, and prices skyrocket as inflation takes over the nation. However, there has been an increase in home sales in the state compared to 2021. So while foreclosures and short sales are at an all-time high, these sales may tip the balance in an investor’s favor.

Housing Costs on the Rise in Illinois

Today, potential homeowners in Illinois must pay about $8,000 to secure a property. This includes $5,000 yearly for the mortgage. Skyrocketing inflation, increasing mortgage rates, and high property taxes have much to do with this and have also increased the cost of living. It is little wonder why foreclosures have more than tripled in Illinois compared to last year. Most people cannot keep up.

Amendment 1 will potentially make this dire housing and living situation worse. If it passes, it will make housing unaffordable for most people in the state. On average, they can expect to pay an additional $2,000 in property taxes in the next couple of years.

During this time, yearly property taxes have increased by more than $1,000, equal to five additional mortgage payments for Illinois residents. In total, housing costs may increase by almost $5,000 yearly for the same home you would get in 2022. This does not include maintenance and homeowner’s association charges.

Foreclosure Rates in Illinois

According to Market Watch, in metro areas, foreclosure filings increased by more than 95%, and Illinois was not the only state to go through this. New Jersey and Chicago also experienced skyrocketing filings, but California, Tennessee, Ohio, Florida, and Illinois topped the list. The rates went back to pre-pandemic levels in the first half of this year, but they may normalize by the first half of 2023.

Most foreclosure activities are based on loans delayed more than 120 days before the pandemic or already in foreclosure. Most of them were protected by the moratorium placed by the government. In other words, it was only a matter of time before foreclosure rates normalized again.

If your home or any other property is in foreclosure or at risk of a short sale, you have more options than you think. A DuPage County short sale attorney can detail them for you and provide the necessary paperwork.

Where will you and your family go if you lose your home? The pandemic has wreaked havoc on businesses leading to income loss on a massive scale. But you can still recover with help from experienced foreclosure attorneys.

Contact Covert Marrero Covert LLP for A Consultation Today!

If you have received a foreclosure notice or want to know more about short sales, contact our DuPage County short sale attorney at Covert Marrero Covert by dialing 630-717-2783. You must get legal help as soon as possible and before your debts increase. Our attorneys cover all the bases and ensure your interests are protected.

All of our consultations are strictly confidential, and the first is free of charge. If you wish, we can accommodate an off-site meeting or a meeting after hours if you are too busy during the day. Our attorneys speak various languages, so communication is not an issue. We can develop a custom strategy to help you avoid foreclosure or other positive results.

How To Buy A Short Sale Property In Illinois

Do you want to purchase a new home in Illinois for a bargain? If you answered yes, then you should consider getting properties that are on a short sale. A short sale property always sells below the amount the current owners owe on it to their lender. Anything from unemployment to a divorce can force homeowners to sell their home for less than what it would have amounted to, provided they paid their mortgage regularly.

Experienced Illinois short sale attorneys from Covert Marrero Covert will ensure you get the best deal.

How To Buy A Short Sale Property In Illinois

Consult an Attorney

The first thing you need to do is consult an attorney who has experience handling short sale transactions. While you can use MLS listings to find potential ones, experienced Illinois short sale attorneys can help you narrow down your choices to ensure you make a wise decision.

An attorney will also warn you if a property you are interested in is approved for a short sale or is pending reviews from a third party. If the latter is the case, the process can take longer than you think. In some cases, the homeowner may not qualify for a short sale, so you will be wasting your time. A reliable attorney will also tell you if a short sale is worth your time and money or not.

Make an Offer

Once you finalize a short sale property to purchase, your attorney will start negotiations with the lender. If you don’t have a real estate attorney in your corner during this step, you may end up paying way more than the property is worth.

As a general rule of thumb, make sure your offer is competitive. In case of a short sale, it should be close to the property’s market value rather than the list price. Illinois short sale attorneys from Covert Marrero Covert can give you the best advice in this regard.

The offer stage is the longest step of the short sale process. The lender may approve the sale with or without conditions, counter your offer or reject the short sale. If your offer gets rejected, you and your attorney will have to repeat the process.

The Closing

Once negotiations end, you should get an approval letter from the lender and a date for the closing. Most short sale lenders give 45 days before the closing date to give the buyer enough time to secure the mortgage before the approval letter expires.

Get In Touch With Short Sale Attorneys At Covert Marrero Covert LLP

If you are eyeing short sale properties in your area, contact Illinois short sale attorneys at Covert Marrero Covert LLP today. We will work with your realtor and the title company to ensure the transaction goes smoothly for you. We will also go the extra mile and recommend an experienced and trusted realtor if you want.

Our attorneys will also go through and revise the short sale contract as per your needs and advise you on everything from disclosures to potential repairs. We can also prepare the closing documents and handle title issues, so you don’t have to. All of our short sale attorneys are highly skilled negotiators and will ensure you get the best deal possible. Get in touch with us at any of our offices in Naperville, Warrenville, and Schaumburg for a consultation today.

Why You Should Opt for Short Sales in Illinois Rather Than Foreclosure

Are you unable to pay for your home and fearing foreclosure? If you live in Illinois, you can avoid foreclosure by instead opting for a short sale. This sale sees a property sold for a lower price than the amount currently owed on the mortgage. Your lender may agree to it if you are unable to come up with enough money to pay back the complete amount or if you must move ASAP – for any reason.

This is preferable over a foreclosure because if your property is sold for less than the amount owed on the mortgage loan, you may be slapped with a deficiency judgment.

What Is a Deficiency Judgment?

A deficiency is the difference between the sale price of the property and the total debt owed. If the lender or the bank gets a deficiency judgment against you to recover the deficiency, they can employ various collection methods to do so. This can be anything from taking an amount from your wages or by levying your bank account.

Since Illinois is a judicial foreclosure state, the court handles all foreclosure cases and deficiency judgments. You can file bankruptcy to get out of it, but if you opt for Chapter 13, you may have to pay part of the debt.

Why You Should Opt For A Short Sale?

The main reason why you should opt for a short sale is to discharge the debt you’ve accumulated on your mortgage. If you have already done so by filing for bankruptcy, you can still use the sale to ensure your name is removed from the property title. Plus, you may also get some money after the closing.

In contrast, a foreclosure will take a lot longer than a short sale (approximately more than 800 days). During this time, you will still have to ensure the property is maintained and assume liability in case of damages. Additionally, the event can irreparably harm your credit score.

A short sale takes a mere four(4) to six(6) months to complete at most and once the property is sold, you will not be responsible for it at all. At that point, it will officially belong to the new buyer and not you. Plus, you can still live in the property for a while before the sale so you will have time to arrange other accommodations for you and your family.

Whether you are at risk of foreclosure or want to know all of your short sale options in Illinois, get in touch with Covert Marrero Covert LLP today. We have been representing clients in Schaumburg, Warrenville and Naperville, Illinois for years and will ensure your interests are protected at every turn. In fact, we can also arrange off-hour appointments for you if you cannot make it to our offices during regular business hours. We understand the stress and frustration you must be going through at this trying time. Get in touch with us for a consultation today.

Short Sale – The Best Way to Avoid Foreclosure

Falling behind in your mortgage payments can land you in a troublesome situation. If you find yourself in such a situation, you can either wait for your lender to initiate foreclosure proceedings or opt for a short sale. Most lawyers suggest that although short sales are tricky to pull off, they are a far better option for the borrower than foreclosure. The embarrassment and negative impact on your credit score that comes along with foreclosure makes a short sale a more viable option. But a short sale can only be possible if the mortgager agrees to it.

Without the consent and permission of the lender, you simply cannot opt for a short sale and will be forced to go into foreclosure. Therefore, it is imperative that you convince your lender to agree to a short sale. Getting the assistance of a short sale lawyer can help you present your case to the lender in a more compelling and convincing manner.

How can a short sale lawyer help you?

Empowered by their experience, an attorney can build a case in favor of a short sale as opposed to foreclosure. By demonstrating to the lender that they can potentially benefit from opting for a short sale your lawyer can help you avoid a foreclosure.

One of the advantages for the lender in a short sale is the shorter recovery time which means they can recover their money sooner. As borrowers stop making mortgage payments as soon as a property goes into foreclosure, the lender will have to wait several months before they can recover their money. Whereas, the short sale allows both sides to settle their affairs in a short time frame.

Your short sale lawyer can also make the lender realize that you have legal representation and would devise a foreclosure defense if the lender decides to refuse the short sale. In most cases, lenders do not wish to waste their time in the litigious process as they are time consuming processes. Although, every case varies from one another, and only a short sale lawyer can advise you accordingly after carefully studying your situation and relationship with your lender.

If you wish to know more about this subject and speak with an experienced foreclosure defense lawyer, contact the offices of Covert & Covert LLP at (630) 717-2783 and schedule a free consultation session.