Short Sale Condos Chicago
In the real estate market today, there is an overwhelming amount of Short Sale Condos in Chicago. Because of all the great things available in the real estate market such as low interest rates, $8000 first time home buyers tax credit and low interest rates, and a short sale condo in Chicago is what you have been considering, here are few things to keep in mind while making an offer on a Short Sale Condo and a few things you need to know.
First, understanding a short sale means that the condo is being sold for less than what the current seller owes on the condo. It has become know as a short sale, because in a situation where the condo is being sold for less than what is owed, the seller does not have to come up with the difference, hence it falls short of being a profitable deal. Short sales condos in Chicago have increased greatly because of many factors, job losses, aggressive borrowing when credit was easy and also the decline in home values because of the temporary slow in the real estate market.
There are a few pitfalls for buyers, and you should know the risks before making an offer on a short sale condo in Chicago.
1. You need to be patient. Even if the seller agrees to the terms of the contract, the seller's lender (or lenders, if there is more than one mortgage) would have to approve the sale. When dealing with only one lender the contract approval can take approximately 2 months. When there is multiple lenders the contract approval could take four months or more.
2. Today's lenders like cash offers. If you cannot pay in cash for a short sale condo in Chicago, make sure that your financing is set. If you have been pre-approved, have a large down payments and can close at any time, your offer will be viewed more favorably by the seller's lender.
3. Lenders like offers that do not have any contingencies and can close at any time. So if you have a home to sell before you can close in the short sale condo, a short sale may not be for you.
It is also very important to work with following professionals:
1. Real Estate Attorney - Approximately two out of five short sale offers are approved by lenders. Having a good real estate attorney understands the short sale process will increase your chances of getting your short sale offer approved by the seller's lender.
2. Qualified Condo Specialist - Working with a Condo Specialist who knows and understands the short sale process is as vital as have a good real estate attorney. Remember, your Condo Specialist helps at negotiating your deal.
3. Title Officer - Because of having multiple lenders in some cases, it is a good idea to have a title search done to see if there are multiple lien holders. In addition to a mortgage, there could be real estate tax liens, mechanic's liens, and line of credit. There are just some of the bumps in the road that could delay making it to the closing table.
There are risks involved in short sale condos in Chicago. However, if you time and patience, a short sale condo could be a winning situation for you and the seller.
