What is a Short Sale?
The term “Short Sale” is used in the real estate world to describe whenthere is more debt owing against the property than the actual propertyis worth. The owner can’t sell or refinance the property unless themortgage or lien holders agree to accept a payment that is less-or-SHORT-of the amount the owner actually owes. A short sale is when a borrower who is underwater on their property has no other way but toshort the lender(s) the payoffs in order sell the property.
Why do a short sale?
The answer is simple. Borrowers do a short sale to avoid having aforeclosure, which can be very damaging on one’s credit. A shortsale is also another way for borrowers to understand the outcome of the situation and to lessen the amount of late payments in a lengthystressful foreclosure process.
The Foreclosure Timeline
Knowing your states foreclosure timeline is essential. Most borrowershave no idea how long they can be in their property until they will getevicted. Some think its one-month after first missed payment whileothers think it’s much longer. The truth is it is depends on what stateyou are located in since foreclosure law varies state by state. You mustfirst know whether your state is judicial or non judicial. IL is a judicial state; therefore, the foreclosing lender must go throughthe court system in order to foreclose on any borrower. In IL is takesapproximately 210 days to foreclose on a borrower after Notice of Default (NOD) is served.It is important to understand what NOD (Notice of Default) means. Notice of default is the official notice that foreclosure has been filedand being pursued. A borrower should know if an NOD has been filed because they will have been served in person or through some certifiedmailing. They can also expect to get a thick stack of legal documents,which may look very threatening.In some states the process may be as quick as a couple months. It is