If you are struggling with an “underwater” mortgage, you’re got plenty of company. In 2014, 9.1 million U.S. residential properties were underwater. That figure represents 17 percent of all residential properties with a mortgage in the United States. Many have lost their homes in the last decade. Others are still coping with loans worth more than their homes are worth. Unforeseen circumstances – including injuries, illnesses, death, and unemployment – can cause even more financial difficulties for property owners struggling with difficult mortgages.
Fortunately, there are ways to defend your family against foreclosure and ways to resolve difficult financial situations. One option is a short sale. A short sale happens when a lender allows a homeowner to sell the property for less than what is owed on the loan. This allows both homeowners and lenders to avoid foreclosure. Of course, the negotiation and sale process for a short sale can be difficult and lengthy, which is why you need an experienced Chicago real estate lawyer working for you when you choose the short sale option.
Many homeowners will have concerns about the impact a short sale will have on their credit. Compared to the credit repercussions of a foreclosure, a short sale may be a better option. Provided that homeowners remain current on other financial obligations, the credit effect of a short sale can be as short as twelve to eighteen months. Bankruptcies and foreclosures remain on your credit report for a much longer period.
The short sale process is complicated, and it can genuinely impact your financial future. However, by working with a knowledgeable Chicago real estate lawyer, you will better understand the process, more easily move through it, and be better prepared for your future. To learn more about short sales and your other options, arrange to speak at once with an experienced Chicago real estate lawyer.