For Sellers

Contact an Attorney

If you believe you are in a short sale situation, or if you have already missed one or more mortgage payments, your first step should be to contact a qualified attorney. A short sale is a complex legal process and you will need expert advice. A Realtor cannot give legal advice and cannot represent you with your mortgage lender. Get in touch with an experienced short sale attorney.

You should also contact a professional tax advisor. Short sale transactions may have an impact on your federal or state income tax.

Loan Modification Scams

You may be contacted by companies or other organizations offering to assist you with a loan modification or some other way to keep your home. Some are legitimate, many are not. For information on how to avoid mortgage fraud or loan modification scams, click here. You should never sign any contract or send money to anyone without consulting an attorney.

Short Sales

A short sale takes place when the mortgage lender allows a home to be sold without being paid the full amount of the mortgage.

Not everyone will qualify for a short sale. Lenders will only approve short sales in cases where the homeowner cannot repay their mortgage due to economic hardship and where the homeowner has no other financial assets (investments or bank accounts) available to repay the mortgage. Lenders usually approve short sales only for a homeowner's primary residence; investment properties or vacation homes may not qualify.

Economic Hardship

Lenders will only consider a short sale when the homeowner has a legitimate financial hardship that keeps him/her from being able to repay the loan. Economic hardship includes:

Employment changes including unemployment, loss of hours, under employment or relocation over 100 miles
Business failure
Illness and medical costs
Divorce or death of spouse
Increase in monthly payment
Natural disasters

These are general guidelines, you or your attorney should check with your lender for their specific requirements. Conventional loans may have requirements that differ from federally insured or VA loans.

More Information

For more information on short sales or the alternatives, please contact our office and consult some of these web sites:

makinghomeaffordable.gov	knowyouroptions.com
HAFA Brochure	Illinois Mortgage Relief Project

To find a HUD approved housing counselor, call: 800-569-4287 or 888-995-4673