Monday, January 24, 2011
Spaces: What is a Short Sale?
By Eva Bergant
What is a short sale? It is when the sale of the real estate does not produce enough money to pay off the existing mortgage(s) on the real estate, thus "Coming up short.” It succeeds when the borrower has significant financial hardship and the lenders agree that accepting a reduced loan repayment is an advantage to them over the fees and legal issues to get full repayment from the borrower or from foreclosure. The borrower is not automatically released from the responsibility to repay the balance of the loan. The borrower may be able to avoid this deficiency, thru legal actions and may be able to restore their credit status in one to seven years.
How is this different from a foreclosure? In a foreclosure the real estate is sold by judicial sale and the lenders or lien holders are paid from any proceeds, in the order of their liens on the property. Foreclosure is begun when the lender files a suit against the borrower for not paying the mortgage as agreed. Since this is a legal process, it is time consuming and expensive. The negative effect on the borrower is larger and the process takes longer than a short sale.
So. what’s on the market in Bucktown and Wicker Park?
235 attached properties ranging from a 1 bedroom 1 bath condo to a 4 bedroom 4 ½ bath townhouse -
92 detached properties range from house on Armitage being sold as land to a 5 bedroom 6 ½ bath designer home on two lots on Cortland.
Have a topic you’d like to see explored please contact me.
If you’d like more information on properties currently on the market or selling your home just drop me a note at EvaB[ATsign]atproperties.com
*** Information sourced from MREDLLC; 1/24/11. Attached Property and Detached Property residential Bucktown (Ashland, Western, Fullerton, North) and WickerPark (Ashland, Western, North, Division)