COMMERCIAL FORECLOSURE SPECIALIST

Are you upside down in your property value or behind in your payments?

I am not one of those CON artists that will con you into thinking I will buy your property, wrap you up into a long term commitment and only close 1/3 of the time!  Our success ratio on helping property owners avoid foreclosure is 97%. 

While working with me you will not have any out of pocket expenses! I am a  local Real Estate agent and I specialize in Foreclosures and Short Sales! It is imperative that you work with an educated Foreclosure and Short Sale expert! It is most likely that  I  can save you from foreclosure even if you owe more than the building is worth. 

What is a Short Sale?

A Short Sale is when a lender accepts a discount on a mortgage to avoid a possible foreclosure auction or bankruptcy.  For example:  A property owner who is facing foreclosure has an existing first mortgage of $1,000,000.  The market value of the property is $700,000.  Long story short, the lender accepts an offer for $700,000 and the property is sold.

Why would a bank do that?

Banks do not like bad loans.  If they see an opportunity where they can sell the property without the huge loss of a foreclosure, they will do it.  Some lenders report that if the property goes into foreclosure by the time the home actually closes with the new buyer, the lender will be lucky to net 50% of the original loan balance.  They are in the business of lending money, not owning properties.  If they can accept a short sale offer and rid themselves of the bad loan AND net more, in lieu of the property going into foreclosure, they will do it everytime.  It's simply smart business.

What if I have equity and I don't want to do a Short Sale?

Like us and probably yourself, our buyers are creative.  We can structure a master lease option, a land contract, seller financing, and a myriad of creative solutions.  The buyer would be required to come in with a security deposit that at least covers your arrearage and would stop the bank from pursuing foreclosure action.

I really want to keep my property, can I?

There are 7 ways to avoid foreclosure.  Short sale is just one of them.  The first time we meet I will go over all of your options so that you can make an educated decision as to which course of action is best for you.

How long does the foreclosure process take?

In Illinois, the average foreclosure takes 8 months, from Notice of Default to Date of the Sale (Auction).  A well-priced short sale being processed by an educated short sale listing agent will sell and close in about 4 months.

My sale date is scheduled in less than 60 days, now what?

The closer it is to the auction date, the tougher it will be to perform a short sale.  It is possible to request an extension on the sale date.  Since we have great relationships with many of the lenders, we have a fair chance.

Will I still have to pay property taxes if I do a Short Sale?

Property taxes will always have to be paid as part of any accepted short sale.  Whether it's you or the lender depends on their policies and the specific agreement you reach while negotiating the short sale.  The lender winds up paying the taxes the majority of the time.

Do I have to qualify for a short sale?

NO.  If someone can't make their payment and they are otherwise insolvent, they qualify for a short sale.  Note:  Insolvent simply means their total debts are greater than their assets.

How will this affect my (or my company's) credit?

There is indeed damage to your credit.  The more late payments you have, the more your credit will be affected.  In the end, a short sale will be noted on your credit report.  Consult with a credit repair expert and you can fix your credit within a year or two.  With a foreclosure however, your credit will be damaged similar to a bankruptcy and it is damaged for 4-7 years, preventing someone from obtaining a government-backed mortgage for a substantially longer period of time than a short sale.  Fannie Mae guidelines state 5 years to qualify for a loan after a foreclosure.

Will the loss the bank takes be treated as a taxable gain to me?

Consult your tax attorney or qualified CPA.  Recently the tax law was modified and now most people who do a short sale will have no taxes due as a result of the sale.  See IRS form 982.

How do you, as my listing agent, get paid?  Who pays your commission?

The bank will pay the commission along with all the other usual closing costs.  You will have no out of pocket expenses if you hire me.

Do I have to miss a payment to do a Short Sale?

It depends on your bank and their current situation.  Typically a bank won't discuss a short sale unless the seller is 60 days late or more.  That is not always the case.  We have helped sellers who were not late at all. 

What if I have a 2nd mortgage or other liens?

Both of your lenders will need to be satisfied in some way to complete the short sale.  If your first lender will be paid off by the sale, then we just negotiate the terms with the second lender.

I couldn't afford to pay the full payment, so I stopped making it.  Now, I am still collecting rents and not making the payments.  What do I do?

Usually, there is a clause in the mortgage documents that states the lender gets rights to the rents through an assigment.  If they have not already demanded an assignment, they probably will.  Seek legal counsel, the consequences of keeping the rent and not making the payment may be heavy.

I've filed bankruptcy, can I do a short sale?

Bankruptcy stops the foreclosure process.  Usually the banks will ask the trustee to release the property from the automatic stay so they may continue with the foreclosure process.  Once the property has been released from the bankruptcy, the foreclosure process starts right where it left off.  Typically, you have anywhere from 3-5 weeks until the foreclosure process begins.  Once it begins again, we can request a short sale with the bank.

I already talked to my bank and they said they won't accept a short sale.

Lenders rarely work with principles to do short sales.  When a third party professional comes into the picture they are much more willing to negotiate.  They have stacks of paperwork that they deal with every day and they usually only work with people that have experience in short sales; especially the ones they have already had a good experience with.

There are alot of vacancies and/or it needs alot of work, will it sell?

Ironically, it may be easier to sell.  The bank always completes a market analysis to determine the property's value.  Banks are in the business of lending money, not property management.  If they have to sink a bunch of money into it, to get the property in marketable condition, they will just as soon take a discount and sell it to a qualified buyer with the highest offer, then sit on it for several more months and wait to sell it later to an investor after the foreclosure for the same price.

We tried to sell our property already without success, can you still sell it?

The lender does not want to take the property back and they will work with us to find out what the market is willing to pay for your property.  They just need to know that it is properly marketed so they are getting maximum exposure.  A good Realtor has alot of experience in marketing and knows how to find buyers.  The more buyers, the more competition, the higher the price.  On average, only 14% of For Sale By Owners end up selling their own property usually due to lack of marketing.  I know how to market the property, find the value, offer it to the market at the right price, negotiate with the lender so they can see that we have found them the best buyer for the highest price, and coordinate the closing and buyer due diligence so we can be successful.