Marki Lemons

Author, Speaker, & Consultant

Posterous theme by Cory Watilo

Filed under: short sale

Illinois Short Sale Listing Forms

The following forms are  to use in addition to your listing packet. All forms might not apply to every transaction however, it is better to get everything signed upfront instead of having to go back. Explain the form and inform the seller how it might apply to their transaction.

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“AS IS” Addendum: http://www.box.net/shared/fc8uu8qm2h2cczqalb7f

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Rider 20A: http://www.box.net/shared/rm102ft9jfm0u6kv6ccu

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Rider 20B: http://www.box.net/shared/96irf8m4t7z6pa65c9on

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Authorization to Release: http://www.box.net/shared/rxvg3fv05x18m52h37h3

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Arms Length Transaction: http://www.box.net/shared/s49g3zkbm476dizr8ifc

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FHA Amendatory Clause: http://www.box.net/shared/pg9h6c7rq2fh76u8kbq9

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Condo Questionnaire: http://www.box.net/shared/b1600xymdoavtqbydkv5

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MARS Disclosure: http://www.box.net/shared/7n62fvldta4lvmhtox65

Messages - Short Sales

Hello Marki,
I took the SFR class from you here at Mchar..I wanted to pick your brain if I may, more & more of the listing interviews that I am doing lately are people who can afford to stay put but want to attempt a short sale because they are feeling stuck, upside down by 100K + and bottom line is they just want out of this investment but I do not personally see the hardship except for the fact they do not have the $$$'s to break even on their homes. Do you have any words of wisdom for me?
It seems to me in my experience if they are unable to short sale they just let the home fall into foreclosure because they want out..
Should I just list them and let their banks decide? My broker tells me that they need to have a hardship to qualify for a short sale..

Marki Lemons-Ryhal May 31 at 8:24am
Great Question. At a meeting two weeks ago with Bank of America the presenter stated" Short Sales are done as a result of hardship not convenience" . I would always try a short sale but paint a realistic picture to the homeowner prior to taking the listing.

In setting a realistic picture keep in mind that they do need to demonstrate financial hardship per most lender guidelines. We are starting to see some portfolio lenders do short sales without financial hardship but you must attempt the short sale to see if this is one of those lenders or ask loss mitigation if this is a portfolio loan or one they are servicing on behalf of a investor.

via facebook.com

If I buy a unit in a condo bldg, do I need to worry about extra costs beyond usual monthly assessments if many units are short sales and forclosures? - Trulia Voices

If I buy a unit in a condo bldg, do I need to worry about extra costs beyond usual monthly assessments if many units are short sales and forclosures?

Lori
Lori
Home Buyer
Chicago, IL
A few hours ago - Property Q&A in Chicago - 8 answers

Will each unit owner (bank or private) still legally have to pay their individual unit monthly assessment costs, or is there any chance that the owners in good standing would have to carry more than their load to keep builing upkeep and amenities intact?

via trulia.com
Lori, You have a lot to be worried about. First due to the fact that distressed unit owners fail to pay assessments there is a likely hood that the monthly assessments will increase in order to offset the debt of non-paying owners. There could also be the cost of pending and future special assessments. It would be advantageous to look at the financial for the association to insure they reserves and you want to also make sure the association will continue because in buildings with no association you risk not having insurance, scavenger service, and public utilities because of failure to pay. Also look for additional price reductions due to short sales and foreclosures which will create a reduction in equity. If more than 15%of the current owners are in arrears on their assessments most lenders will not finance a buyer to acquire a unit therefore, units will only be sold to cash buyers. Cash buyers are looking for deep discounts and they tend to be investor purchasers and will increase the number of tenants in the association. Everything mentioned above is direct or indirect cost of ownership.

Can't I rent from my bank after my foreclosure ... - Zillow Real Estate Advice

Is there a way to rent my home from the bank that is foreclosing on my property? My house is under foreclosure as of yesterday. My home has not been purchased to have a tenant. I would like to stay in my home rather than give my money to a landlord.
via zillow.com
If the notice of default was just filed yesterday you can stay in your home rent free until after the sheriff sale. Illinois is an intermediate mortgage theory state which mean that the deed is in your name and you have the right to possess the property until the deed is conveyed back to the lender through a judicial deed. The redemption time in Illinois is seven months however, we have seen numerous delays. Once the bank has the deed there is only a handful of banks who would be willing to rent the property back to the previous owner. I recommend you give your bank a call to discuss your options.

HELP FOR CONDOMINIUM OWNERS AND ASSOCIATIONS

Kieth, thank you for the following information:

Hello Marki,

In lieu of the real estate market, we’re encountering a plethora of unit owners behind on their homeowner association (HOA) dues. This potentially depreciates the value of the other unit owners who are current because banks will not refinance or lend to other unit owners/buyers when too many units are not making payments. Moreover, if the person is foreclosed, the property may sale for significantly less in the future. And this will negatively impact the value of the other units, widening the gap between what is owed and the property value.

We’ve been 100% successful in having all unit association dues paid in full by executing a short sale for those behind on payments. Additionally, this helps stabilize condominium prices. If you own a condo or know someone who does, and there are certain unit owners who are behind on their respective HOA dues, please contact us.  We are willing to come to your next association meeting and discuss ways to salvage, maintain, and improve condominium values. For those out of state, we’d be available for a conference call.

 

Call us now to assist in making your HOA financially healthy and to protect you condominium value.

 

Regards,

Keith Fenceroy, JD/MBA

Legal Counsel

Keith@NexusDebtSolutions.com

www.NexusDebtSolutions.com