Real estate transactions are legal processes, and before you make a purchase in Illinois, it is essential for you to have the information you need. This is particularly true when you are considering buying a home through a short sale. We at the Essig Law Office often provide legal advice to clients who want to take advantage of the potential savings without making common mistakes.
Bankrate.com warns that people who want to sell their homes through a short sale have often let maintenance of the property lapse. This is common because the financial challenges that caused them to get behind on the payments probably also kept them from addressing issues such as a faulty drain, termites or mold. Experts recommend that you have a thorough home inspection done by a qualified professional before you make any kind of commitment.
The seller may need to provide your lender with certain information before you can close on the property. For example, you should have a list of all the liens on the property, including mortgages and tax liens from unpaid property taxes. A comparative market analysis may also be necessary to show that the property cannot be sold for the amount left on the mortgage, and the seller will probably have to provide a hardship letter and proof of income or assets that could be used to pay the debt. In some cases, sellers are unwilling to offer these documents, but the benefits of selling rather than going into foreclosure may be enough to prompt the owner of the home to do whatever he or she can to work with you.
The seller’s lender may be reluctant to accept low offers or may prove difficult to negotiate with, but if you get a loan approved before you begin, you may be more likely to succeed. More information about purchasing a home is available on our webpage.