Many of my potential clients, are confused as to what a short sale is and surprised( just like I am) that there have been so many 2011 Buffalo Grove short sales .
What is a short sale?
A real estate short sale is a form of agreement between the seller of a home in the beginning stages of foreclosure and their lender, allowing the home to be sold for less than the existing loan balance outstanding. The bank actually accepts less than the loan amount in order to avoid a foreclosure proceeding.
How many Buffalo Grove short sales(detached homes) closed in the last 12 months?
There were 25 Buffalo Grove short sales for detached homes that closed in the last 12 months. Just to put it in perspective, the total Buffalo Grove detached home sales that closed in the last year were 225. Thus actually 11 % of all Buffalo Grove detached homes that sold in the past 12 months were short sales.
How many Buffalo Grove short sales(attached homes) closed in the last 12 months?
There were 28 Buffalo Grove short sales for attached homes that closed in the last 12 months. Just to put it in perspective, the total Buffalo Grove atttached home sales that closed in the last year were 212. Thus actually 13 % of all Buffalo Grove attached homes that sold in the last 12 months were short sales.
What additional documents are necessary for the seller to proceed with a short sale?
Lenders will require a financial package that usually includes a hardship letter, two months’ bank statements, two months’ pay stubs, two years’ IRS tax returns, and other information pertinent to prove the reasons for pursueing a potential short sale.
Will the seller’s credit rating be affected if the bank allows a short sale on your property?
While it is up to the individual lender to decide what to report, what often happens is the loan will report as “paid” on their credit report. The seller’s credit will be affected, but not as much as it would be affected if they had waited for their home to go through foreclosure.
Are there tax implications for the seller if a short sale is consummated?
Much like the issue of credit reporting, the circumstances are individual to the lender. As a short sale represents a loss for the lender, they can report of debt forgiveness to the seller. If a formal tax form 1099 is filed, the seller may be responsible for paying taxes on the amount of debt forgiveness. This is a good question for your tax advisor since in some cases a form 1099 was filed and in other cases, I have seen that it was not issued.
What can your Buffalo Grove Realtor do for you…?
As a Buffalo Grove Realtor who has successfully closed a number of short sales this year… I will bring to the table my expertise, including a team of professionals who have helped me closed many short sale transactions this year. Whether you are the buyer on a Buffalo Grove Short Sale, or a seller… my job is to orchestrate a successful closing.
If you want to learn more about this Buffalo Grove short sales or the Buffalo Grove community, visit my websites, www.buffalogrovehomes.com, www.buffalogroveareahomes.com, www.vernonhills-homes-for-sale.com ,call me at 847-602-5435, or email me at firstname.lastname@example.org.