All members of CAR and MORE Associations need to abide by the MRED rules and regulations. MRED will fine any agent that does not abide by the MRED rules and regulations.
Any change in listed price or other change in the original exclusive brokerage agreement shall be made only when authorized in writing by the seller. The change shall be placed on the MLS Service within 72 hours after the authorized change is received from the listing broker.
For all CAR members, listings of property may be removed from the service by the listing broker before the expiration date of the exclusive brokerage agreement provided the seller and the listing brokers authorized the cancellation in writing. For all MORE members, the broker and seller need to authorize a cancelation before it is canceled in MLS.
If notice or renewal or extension is dated after the expiration date of the original listing, then an updated exclusive brokerage agreement must be secured for the listing to be placed into the Service. Any extension or renewal of a listing agreement needs to be signed by the seller. According to the MRED rules and regulations, an email from the seller indicating what the new expiration date is will suffice.
Once a contract is accepted by the buyer and the seller, you need to change the status to PEND in the MLS. You have 72 hours from when the contract was accepted by the buyer to change status of listing without receiving a fine. This also includes short sale contracts that have been signed by the seller and buyer, however not yet signed by the bank.
If it is your listing and it closes, always make sure to close the listing out within 72 hours of the closing and give proper credit to the buying agent by filling out the buyer agent information on the MLS. The status should be changed to say CLOSED.
If you sell a listing that is not yours, then make sure that within 72 hours of the closing, that credit is given to you on the buy side and your name is listed as the buy agent.
All listings except vacant land, new construction, confidential commercial listings and deeded parking slips must have a primary photo in the system within seven days of their entry into the system. If no photo is submitted, the listing will be placed in the HOLD status.
This is a recap of the Multiple Listing service’s rules and regulations. OwnACondo.com has a responsibility to make sure that all the agents are abiding by the MRED rules and regulations.
A short sale takes place when a bank or mortgage lender agrees to discount a loan balance due to financial or economic difficulties on the mortgager's part. A short sale occurs typically when one is behind on payments. If someone is late one month on their mortgage and they foresee that they are not going to be able to pay the upcoming months, then the best thing to do would be to short sell your home. I think that it is important to know the step- by- step processes in short selling your home.
The first thing that you want to do is contact a real estate agent. Preferably an agent who is familiar with short sales and the short sale process. The agent will sit down with you and give you a listing presentation specific to short selling your home. The rule of thumb is that the agent will list your home approximately 15% lower than the market value. The price will continue to drop until on offer has been made on the property.
I would also suggest you find a real estate attorney that specializes in short sales. He/she will guide you through the entire process.
As part of the listing presentation the real estate agent will explain to you that you will need to fill out a Short sale packet. This is basically a packet explaining to the bank why you need to short sell your home. The packet includes a financial analysis worksheet that will you have to fill out that will include all of your assets, debt, income etc. You will also have to fill out an authorization of release form so that you and/or your real estate attorney can call the bank to receive information. There is also a hardship letter in the packet in which you are to write a letter to the bank explaining how you got in this situation and why you need to short sell. You will need to provide the lender information, as well as an executed contract and listing agreement. The last thing you need to include is your W2’s for the past two years and also bank statements from the last two months. Every short sale packet varies slightly but this is what I have used for my past experience with sort sales. After completing the packet of information, you will need to send the packet to your lender.
From this point on, the bank is in control. The bank has to review the information in the packet and then have an appraiser come out to do a Broker Price Opinion to see what the value of your home is. After they determine the value, they evaluate the situation and determine the price they are willing to accept. At this point the buyer either accepts or rejects the offer. If the buyer accepts the offer, then the closing takes place within 30 days from acceptance. Your credit will be affected, but not as much as it would if your property forecloses.
Short sale condos are all over the market place but Iâ€™m constantly hearing the question, â€œwhat is a short sale condo?â€Â A short sale is where a bank agrees to take less than the mortgage amount of the loan.Â For an example, lets say you purchased a condominium in Los Angeles for $350,000.Â The bank financed $325,000 for you back in 2007.Â Now you are late on your financing payments and you want to sell. If after many months of selling the condo you finally get an offer but the offer is less than the mortgage amount of $325,000.Â In fact, itâ€™s quite a bit below.Â Itâ€™s at $ 225,000.Â The bank, depending on the situation may actually accept this contract.Â Why would they do that?
The short sale condo is popular right now because of the amount of foreclosed condos.Â There are so many foreclosed condos that the banks are now taking less than the mortgage so they do not have to go into foreclosure with the condominium. Letâ€™s go back to our example. The bank now accepts the $100,000 discount.Â They are clean of the loan and they can move on.Â If they foreclose on the condo, they are in a position that it may take another six months before they actually can take possession of the condominium.Â Thatâ€™s another six months of not being paid.Â Then they have to market the condo.Â This may take a few months to get started because the process before marketing the condo is getting it ready to market.Â Theyâ€™ll have to come in with a team of construction guys and clean everything up to make it ready to market.Â How much will this cost?Â The bank factors this in as well.Â Now that the bank has spent $20,000 in fixing up the condo to get it ready to market, the process begins for selling the condominium.
Now the bank has to hire a Realtor to sell this foreclosed condo.Â How much will that be?Â Five to six percent of the purchase price is typical to pay to a real estate brokerage.Â When you start adding it all up, the time, the money and the energy, many times selling the condo through a short sale is just easier.
Short sale condominiums are rampant all over the United States.Â Choose a Realtor and start looking.Â Youâ€™l find that a high percentage of the market is selling short right now.
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.
Many desperate property owners are trying to find anyway possible that they can sell their property and get out of their loan. A lot of sellers are attempting to unload their condo in a short sale which is typically a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. A short sale typically is executed to prevent a home or condo foreclosure since it is faster and less expensive for both banks and property owners.
Short sale condos are offered at incredible values to savvy real estate buyers. If you had been considering purchasing a condo or thinking about in vesting in some real estate, short sale condos can offer you a great opportunity to purchase a condo for a very low price. You might be surprised by the number of real estate opportunities that are out there just waiting for you to take advantage of them.
Many condo owners that are looking to avoid foreclosure will accept any offer that they receive. When they hit the bottom of their savings they are left with little options except for foreclosure. Instead of permanently destroying their credit, many of these distressed sellers will accept a very low offer and go through short sale proceedings with their lender.
There are short sale condos that suit a variety of tastes from expensive penthouse units to one bedroom condos. Regardless of the type of condo that you are in the market for, you will be able to locate short sale condos in a variety of price ranges in the Chicagoland area. The recession hasnâ€™t left any class unscathed as more and more workers lose their jobs every day. Corporate CFOâ€™s are standing in the unemployment line right next to general laborers that have been laid off. Neither of which can afford the monthly loan payment on their property. It is an unfortunate situation that will hopefully improve over time.
If you are considering purchasing a short sale condo make sure that you have a thorough inspection completed to make sure that the owner is not hiding any major expensive repairs that need to be completed. Also make sure that all proper real estate laws and procedures are followed. By purchasing a short sale condo you will be taking advantage of the current real estate market and realizing that it is an advantageous opportunity to own property.
Short sale condos in Chicago are now more abundant than ever before.Â At a point not very long ago you would never hear of the word â€œshort saleâ€.Â And now, itâ€™s heard constantly. What is a short sale condo? Basically a condo owner owns a condo that they owe a certain amount of money on called a mortgage.Â Letâ€™s give an example of Mary who owns condo that she owes $200,000 on. Mary starts falling behind on her monthly payments and it starts to not look good for Mary.Â She tries to sell the condo through a friend Realtor, but it looks like the real estate market had taken a nose dive.Â The $225,000 condo she bought three years ago now looks to be worth $ 175,000.Â Is this possible?Â It sure is.
Now Mary is having trouble paying her monthly mortgage.Â Sheâ€™s three months behind.Â She canâ€™t sell her beautiful River North condo in Chicago because no one is making offers.Â She canâ€™t sell it below what she owes because she doesnâ€™t have the difference to give to the bank.Â What can Mary do?Â If Mary talks to the bank about her situation, the bank may decide that it would be in their best interest to take part of the $200,000 mortgage, letâ€™s say $170,000 instead of taking it back in foreclosure.Â In foreclosure, the bank would have to manage the condo sometimes for several months before possibly finding a buy for the condominium.Â The bank decides to accept a payoff â€œshortâ€ of the loan amount.Â They agree with Mary to accept the sale to go through at $170,000.Â Mary is released from the note and the new buyer picks up the condo at $170,000.
Where are these short sale condos in Chicago? Theyâ€™re everywhere.Â Bucktown, Downtown, River North and South Loop.Â Rogers Park, Schaumburg, Naperville and Oak Brook.Â Theyâ€™re the next door neighbors and your brother-in-law.Â Everywhere you turn, there are short sale condos in Chicago for sale.Â If youâ€™re interested in finding out more information on short sale condominiums, contact OwnACondo.com, a real estate brokerage that specializes in condos only.Â They can be reached at 630.812.2700.
It doesnâ€™t look like short sale condos are going to be gone soon.Â The way the economy is right now, you may see condos selling this way for a long, long time.Â If the sale doesnâ€™t go short, many times it turns into a foreclosed condos. And weâ€™re seeing a lot of those right now.
Short sale condos are everywhere in todayâ€™s market place.Â I keep hearing, short sale, short sale.Â What does it mean? A short sale is when a bank decides to accept less than what is owed on the condo.Â Why would they do that?Â There are so many instances today where the real estate was purchased for more than what itâ€™s worth today leaving no equity when the condo unit sells.Â Let me give you an example.
A seller of a Miami condo bought the condominium three years ago at $200,000.Â They put 10% ($20,000) and financed the remaining 90% ($180,000).Â They now have a $180,000 mortgage at 6% interest for 30 years.Â Over the last three years they have been diligently paying their mortgage payment when all of a sudden the husband gets transferred and has to sell the condo.Â The couple outs the condo up for sale but they have no offers.Â Itâ€™s a year into the process when finally an offer comes in at $150,000.Â This is substantially less than what the couple bought the condo for but the condo market turned so dramatically that it actually is at todayâ€™s market value, a loss of 25% since 2006.Â What can the couple do?
The bank reviews the situation and realizes that the couple cannot afford the condo anymore.Â If they take the sale at $ 150,000, the couple will lose their $20,000 down payment and the bank will lose because the loan is at $ 170,000.Â The bank will look at all angles and in the end decide that if they take the condo back and foreclose on this couple, there may be more expenses involved than just simply taking a loss right now.Â So the bank ends up agreeing and the sellers close on the condo â€œshortâ€ of their mortgage amount.Â At the closing table the buyers purchase the condo at $150,000.Â The bank gets all of this money and the sellers are released from the loan.Â This is a negative on the sellers credit but the condo is now out of their hair, they have moved on with life and the bank has a new buyer for the condo.
Life is not great for the bank or the buyer, but itâ€™s time to move on.Â Short sale condos can take forever if the bank drags its feet, but if you stick it out, it could be great opportunity to pick up incredible deals because of situations sellers have gotten themselves into.
Short Sale Condos are becoming more and more popular in todayâ€™s home market. A short sale condo is condo that is currently for sale. The owner has defaulted on the mortgage, often time for various different reasons, and they have agreed to try and sell the property before the bank forecloses on it. Many times a short sale condo has benefits to both the buyer and the seller. For the seller, if a condo, or even a home, is sold through a short sale, it is not considered to be a foreclosure and the seller in most cases walks away from the mortgage without have a foreclosure on their credit rating. However, the missed and late payments would be on their credit report which is far better than having a foreclosure on their credit report. Often times, the foreclosure process can be lengthy and the homeowner does not know when they will have to vacate the premises. But when there is a short sale, it is clear that they must give up possession at the time of closing.
Advantages for the buyer would be that in many instances, the bank is willing to settle for an amount that is less than the original amount owed. This makes it a great buy for a buyer and will often times stretch the buyerâ€™s dollar. Unfortunately, the wait for an approved offer varies. But on the other hand if the deal is that great, then it is worth waiting for.
Short sale condos are not limited to one area. You can find short sale condos and even homes in almost every neighborhood of Chicago as well as many of the surrounding communities. Short sale condos and homes are available in all sizes and in all price ranges. Often times the longer the property sits on the market, the more drastic the price reduction becomes.
At OwnACondo.com, our Condominium Specialists are knowledgeable in the short sale process. We represent both Short Sale buyers and sellers. So if you are in default of your mortgage, there is hope in trying to sell your property and at OwnACondo.com we are experienced and can help eliminate some of your stress. So call the Short Sale Condo Specialists at OwnACondo.com today. Find out first hand why more and more buyers and sellers are calling us to them through the process of buying and selling condos in todayâ€™s market.
The real estate market has certainly seen its challenges over the past couple of years but for buyers there are opportunities available that have not been seen in decades, the short sale.Â Short sale condos are becoming more prevalent in the Chicago area and buyers are seeking them out as never before.Â It is not rocket science to understand the basics of a short sale.Â Short sales are when a lender agrees to accept less than the amount owed against the home because there is not enough equity to sell and pay all costs of the loan.Â It used to be that lenders would not even consider short sales if your payments were current but with the changing real estate and mortgage markets more and more lenders are more agreeable to negotiate.
There are several areas you need to be aware of if you intend to pursue a short sale.Â First of all hire a real estate agent who has short sale experience.Â Not all agent even know what a short sales is or ever been involved in this type of transaction.Â An experienced agent can help expedite the transaction and protect your interests.Â It is important that you not miss any details that could affect the sale somewhere down the road.Â Next is to prepare the seller for demands made by the lender.Â Remember the seller has no equity and is unable to pay the difference between the sales price and existing loans.Â Your seller may need to provide a hardship letter indicating their inability to pay the difference as well as taxes they may owe.Â Another very important area to address is to make certain the lender is given a deadline in which to respond once the seller has accepted an offer.Â Some lenders submit short sales to committees but that does not mean a decision could be reached in two to three weeks which lessens the possibility of getting further behind.Â Remember the lender may not be under any pressure to make a decision and the paperwork could sit on someone's desk so a deadline can be beneficial to everyone involved.Â One last area to consider with short sale condos is commissions.Â The seller may agree to pay a commission but actually the lender is who ultimately will pay.Â The reason is the seller is not receiving any money in which to pay the commission.Â Since the lender is losing money they will likely negotiate the commission directly with the listing broker.
Short sale condos in Chicago can be the path to home ownership for many buyers which are expected enter the market in the next few months. It is not always an easy way to purchase your home or condo but the benefits can be enormous.
"Break for sellers: Banks settle for less"
That was the headline for the topmost story on the front page of the Chicago Tribune in its May 31, 2008 edition.
Written by Mary Ellen Podmolik, the story detailed the riseÂ in short sales, a real estate transaction inÂ which a condo or house is sold for less than what is owed to the lender.
In a stagnant or declining real estate market, in which a seller may have very little, zero or negative equity, short sales can be advantageous to all parties involved, including:
- The seller, who is released from the propertyÂ without a foreclosure and possible bankruptcy, the two worst marks on a credit report
- The lender, who accepts less than what is owed but does not have to put forth the time and expense of foreclosing on the seller and having the property sit vacant for an unkown amount of time with no payments coming inÂ
- The new buyer, who purchases the condo or houseÂ at a reduced price
- The condo association or neighborhood, which does not have a vacant property in its midst Â Â
If you'd like to learn more about short sales and see if the process might be advatageous in your particular situation, call us toll free at 877-627-5643 and be sure to click on ShortSaleHelpCenter.com