Avoiding Foreclosure Through A Short Sale
The burst of the housing bubble in 2008 left vast numbers of American homeowners with mortgages that are “underwater,” meaning that they owe more on the home loan than they could hope to receive by selling the property on the real estate market. As a simple example, the person may have purchased the home for $400,000 before the bubble burst, and now after years of faithfully paying their mortgage the home is worth only $250,000 – despite the fact that they still owe $300,000 on the loan. This circumstance is actually very common throughout Cook Country.
According to a report from Lender Processing Services, nearly one-quarter of home mortgages are upside-down. Being underwater is closely associated with the risk of foreclosure: 57.6% of underwater mortgages are in default, and 68.3% are already in foreclosure. If you find yourself in this position, you may feel like there is no way out. Perhaps you even feel desperate about the fact that you are still being required to pay a relatively high mortgage payment based on the previous high value of your home, despite the fact that the home is now worth far less.
An Experienced Chicago Short Sale Attorney May Be Able To Help
Fortunately, you may be able to solve the problem by hiring an experienced foreclosure defense lawyer to represent you in short sale negotiations with the bank. With success, the bank would agree to allow you to sell the property at the highest price you can get on the real estate market, and you would also receive a waiver of deficiency so that you would not be held liable to pay on the balance of the loan.