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.
