For some reason, short sales and the process that goes into them are large mystery to many. From listing agents to buyers and sellers, understanding the basics behind short sales in Illinois is very important. When a bank grants a short sale it is typically because the seller is going through a hardship of some kind and does not have enough home equity needed to pay off the mortgage. In many cases, short sales occur when someone losses a job, files for bankruptcy, goes through a divorce, suffers a death in the family, or is relocating to a different city or town. No matter what the specific case may be, it is essential that Illinoi homeowners are educated on the process of short sales.
When someone in Illinois finds themselves in a tough financial situation and thus is considering a short sale, they will need to create a financial package to submit to the short sale bank. While every bank has their own set of guidelines for short sales, most banks will require that the financial package includes the following:
- Preliminary closing statement
- Hardship letter from the seller
- A letter of authorization so that the selling agent can communicate with the bank
- Financial statement
- Tax returns (typically 2 years)
- W-2s (typically 2 years)
- Bank statements (typically 2 months)
- Payroll stubs (typically 30 days)
- Recent sales comps
It is also important to consider the variety of programs available for short sales. Things like Home Affordable Foreclosure Alternatives (HAFA) and lender fast track programs can open the door to new options for homeowners. Regardless of your specific hardship, going through a short sale is a long and stressful process. Please contact the Law Office of Brenda Murzyn, P.C. and our trained staff can assist you in negotiations with all parties involved.