River North Short Sales| SHORT SALE vs FORECLOSURE
In this Corner: FORECLOSURE
1) Foreclosure in Illinois is a Judicial Foreclosure . This means that the foreclosure must be approved by a Judge. This also means that if a person's home is foreclosed on, that they will actually have a judgment against them on their credit report.
2) A foreclosure will remain on a credit report in the public records section for up to at least 10 YEARS.
3) The other issue with the foreclosure is that on loan application (for purchasing a new home), under Declarations, Section VIII it specifically asks a borrower if they have had a property foreclosed upon in the last 7 years.
4) The other issue with a foreclosure in Illinois is the Deficiency Judgment. The lender has the right to ask the court for a money judgment against the previous home owner personally.
As a result of a foreclosure, a home owner will most likely have the following repercussions:
1) 3 judgments against them
2) Docked at least 300 points on their credit report
3) NO HOME PURCHASES FOR AT LEAST 7 YEARS!!!!
Yes you heard right: NO HOME PURCHASES FOR AT LEAST 7 YEARS!!!
In This Corner: SHORT SALES
1) NOT A JUDGEMENT! BANKS DO NOT GENERALLY ASK FOR LOSSES BACK
2) If the home owner does go through a Short Sale and the bank does not request a money judgment, the homeowner's credit could be affected by as little as 100 points. Much less when compared to a foreclosure!!
3) Purchasing another home after a short sale can hapen in as little as 24 Months when going through Fannie Mae!!! This is extremely important because Purchasing a home with a conventional loan after a short sale can happen in as long as 5 years
To make a long story short, both short sales and foreclosures are things that you dont want to happen to you as a homeowner. However in terms of the hit on your credit and your future buying power, a short sale is usually the lesser of two evils
Don't lose your home to foreclosure! If you or someone you know is dealing with financial hardship and is on the verge of losing their home, please contact me immediately! Let my experienced Chicago Short Sales team help you avoid foreclosure.. Our help is only a phone call or email away!
Jim Kontos
President--Broker--Chicago Short Sales Expert--River North Short Sales Expert
RE/MAX 1st Class
RE/MAX River North
Cell 630 327 9136
Office 847 674 9797
Office #2 312 643 2087
jpkontos@gmail.com
www.rivernorthhomes.com
www.mychicagoshortsalesite.com
www.jkontos.illinoisproperty.com
Your River North Short Sales Expert!
Your Chicago Short Sales Expert!
Disclaimer: *I am not a attorney and cannot give out any form of legal advice..This is a informative real estate blog written by a real estate broker experienced in short sales and foreclosures and not to be confused with any type of legal advice
