How Have Rising Real Estate Prices Affected Short Sales in Illinois?

Real estate market prices will continue to increase throughout the year, and sales are forecasted to decrease. In February, for instance, the median price in Illinois rose, but homes in the state still sold rapidly despite a sparse inventory.

At this time, the increase in real estate prices slowed, but the industry remained competitive. A short sale during this time may yield the same results that it would in a stable economy, but expect a faster sale. Experienced Illinois short sale attorneys can help you set up a short sale quickly and efficiently.

What is a Short Sale?

A short sale is a transaction in which a homeowner or borrower agrees to accept less than the mortgage amount they owe to a lender. Some lenders can forgive the difference, but if yours doesn’t, ensuring you get a reasonable price for your short-sale property is essential.

It is still preferable to foreclosure, especially if you are behind on your mortgage payments – you may be able to qualify for another mortgage once you can apply for one again. With the real estate market remaining competitive and rising property prices, a short sale can be a blessing in disguise for you.

If you could not make regular payments because you lost your source of income during the pandemic, a short sale can yield better results when real estate inventory is low and property prices are high. Your price for a short-sale property lies comfortably in the middle. It is neither too expensive for buyers nor too cheap for sellers (you).

Inflation and Short Sales

The housing market was already experiencing short supplies and high demands before the pandemic, and its arrival aggravated it further. Many renters found searching for affordable housing rugged, while homeowners looked for opportunities to sell high and increase space. As the demand increased, homeowners preferred to remain in their homes rather than sell them, which limited the number of sellable properties.

Prices are expected to increase throughout the year, and the number of sales may decrease. In February 2022, homes sold rapidly due to low inventory and high demand. During this time, the median price rose by 6.4% compared to last year.

For home sellers, especially those that place their property on a short sale, inflation is a good development. The value of your home rises as the property of goods rises. With demand high and supply low, investors and renters look towards short sales to get properties below market price even if it is higher than standard short sale rates. With experienced Illinois short-sale attorneys in your corner, you may be able to get a better price.

In this market, investors who invest in property as a leveraged asset have little choice but to pay the same fixed rate even if property values rise.

Contact Covert Marrero Covert LLP for A Consultation Today!

Whether it is on a short sale or not, selling a home is one of the most significant decisions you can make as a homeowner. It would be best to have experienced Illinois short sale attorneys in your corner with extensive knowledge about the current market rates, such as those at Covert Marrero Covert, LLP. Our attorneys have years of experience guiding clients through complex real estate processes that may otherwise lead to costly mistakes. Contact us for a consultation today!

What Are The Benefits Of Buying A Short Sale In Illinois?

If you are in the market for a new home, but money is tight, consider a short-sale property. These properties are sold for less than market value and less than the amount owed on their mortgage. Banks and lenders agree to short sales to recover some of the loans owed to them.

Top Benefits of Buying a Short Sale in Illinois

Here are some of the main benefits you can enjoy with a short sale:

Get A Home Below Market Price

Short sales can give you more value for your money, and you will also have some leftovers. These are never offered at market value so that you can get them at a great discount. Your Illinois short sale attorney can determine the true value of the property and help you reach an agreement that covers legal costs and repairs.

Get an Empty Unit

If the property has a tenant, your Illinois short sale attorney can ensure the ownership transfer is transparent and legal before the short sale. This includes making sure the tenant is out of the house at closing. The worst thing you can do is rent it back to the previous owner.

They already have bad credit. After getting a short sale, you can work with your realtor to develop a marketing plan for your new empty unit before you put it up for rent. Bring it up to standards first. You will have sufficient money left over to do that and more to make the property attractive to tenants.

Cooperative Home Owners

Homeowners whose property is in foreclosure are not as cooperative as those who put theirs up for short sales. In some cases, buyers may have to force the former to evict the premises, and the previous owner may also damage the property before they leave.

In comparison, most sellers are eager to complete a short sale if it means they won’t have to pay the outstanding mortgage. Short sales don’t hurt their credit as much as a foreclosure can. They can buy a new property later easily. This amicable relationship between you and the seller can speed up the short sale process so you can move into or use the property as soon as possible.

Contact Covert Marrero Covert for a Legal Consultation

If you are looking for a dedicated and passionate Illinois short sale attorney, look no further than Covert Marrero Covert LLP. Our lawyers have extensive experience helping clients buy properties on a short sale and sellers who have fallen behind on their mortgage payments. We leave no stone unturned to ensure you get the best deal. This includes a perusal of the paperwork for errors that can otherwise lead to costly mistakes. This includes legal liabilities you may not be able to handle later.

Get in touch with us for a free consultation today. We are not afraid to go to court if it means you get the best deal and are treated fairly during the short sale process. Remember, the selling agent will also be working with the bank. They may try to short-change you if they think they can get away with it. Our Illinois short sale attorneys can prevent that from happening and take legal action if necessary.

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.

3 Considerations You Should Make Before Buying a Short Sale in Illinois

Short Sale Indiana

When a property sells for less than the full amount owed, that means it has been ‘sold short’ or is a short sale. The process is known for being a great option for homeowners who wish to sell a property that has fallen in value. It is a good way to avoid foreclosure as well as all of the problems that come with it.

Each short sale is different and has several outcomes. To ensure you benefit from positive ones, here are some things you should do when you are searching for a short sale to buy:

1. Locate the Ideal Property

If you see a house in the listing that is priced considerably lower than ongoing market prices, chances are that the seller is trying to attract buyers for a short sale. Get in touch with the homeowners to confirm first but be cautious.

Several homeowners end up listing their property before they have permission from the bank to do so. This is vital because the bank ultimately sets the price. If that is the case, you will have to face a lengthy negotiation process. Chances are you will end up with a price point that will not give you a return on investment.

2. Research the Property

Examine the property before you make any purchasing decision. Ask the owners to provide documents on any unpaid back taxes, liens, etc. Plus, also determine how much the property will be worth once it is fixed up post-sale. You may also have to visit the county clerk a few times. Those efforts will help you get a complete picture of the property before you buy it so you will know exactly what you are paying for.

3. Involve the Seller

The seller or the property owners who are the sellers must inform their lender that they cannot pay off the remaining mortgage amount. At this point, it is important to realize that the seller is not going to profit from the sale. If you are trying to purchase a short sale from a seller who wants a commission for facilitating the sale, back out immediately.

If you wish to short sell your property, you should hire reliable real estate attorneys who specialize in that process such as the ones at Covert Marrero Covert, LLC. We are experienced in negotiating with mortgage companies to help sellers avoid pending balances and to ensure they can walk away with complete peace of mind. We have been representing clients in Schaumburg, Warrenville, and Naperville, Illinois for years. Get in touch with us today.