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A real estate transaction is one of the most important events in a person's life. Because of this, the process can become stressful. It is important to have representation by an experienced real estate attorney to take the anxiety out of the transaction.
Angelina & Herrick, P.C. has been serving clients in the Chicagoland area since 1990, successfully closing thousands of transactions over the last twenty plus years. With two real estate attorneys and a three person support staff, Angelina & Herrick, P.C. is able to provide outstanding customer service and is extremely responsive in handling all types of real estate matters, including short sales and foreclosures. The key to a successful transaction is always keeping the clients happy and informed.
Angelina & Herrick, P.C. represents clients in the entire Chicago area at competitive flat fee rates.
- We make certain that the Buyer has the opportunity to conduct a thorough home inspection and that all home inspection issues are resolved in advance.
- We make certain that the lender is aware of the mortgage contingency date in the contract and check status on the progress of loan approval.
- We review the new survey of the property for encroachments or title insurance problems.
- We attend the closing to review and explain all of the loan and title documents and to make certain that good title is transferred at the end of closing.
- We obtain proper payoff letters and releases for existing mortgages or other loans on title
- We obtain a new survey and resolve all title problems in advance
- We clear any title defects.
- If there is a homeowner’s association, we make certain that all dues and assessments are paid in full and that all association documentation are gathered and turned over to the Buyer.
- We complete necessary documentation for the Seller to obtain local real estate transfer tax stamps.
- We prepare the Warranty Deed, Affidavit of Title, Bill of Sale and State and County Transfer Tax Declarations
A short sale occurs when the owners of a property sell their home but the proceeds of the sale are insufficient to pay all of the Seller’s closing costs and the mortgage in full. In such an instance, the bank holding the mortgage is asked to make up for the shortage by accepting less money than what is owed. This occurs through painstaking negotiations with the bank. Such a negotiation requires experienced attorneys. The attorneys at Angelina & Herrick, P.C. have successfully closed several hundred short sales.
FREQUENTLY ASKED QUESTIONS
1. How long does it take for a short sale property to close?
The time period varies for a number of reasons. However, an experienced firm such as Angelina & Herrick, P.C. can successfully negotiate and close on a short sale within sixty to ninety days.
2. What happens to the owner regarding the amount of the shortage to the bank?
Sometimes the deficiency, the difference between what the bank is owed and the amount they settle for and accept, is waived by the bank during negotiations. However, the bank may require that the owner pay towards the deficiency if possible, sign a note or declare the amount as 1099 income. Under current tax law, the 1099 income only applies to investment properties but it is likely that this law could change.
3. How do I know if I qualify to sell my property as a short sale?
In order to sell a property as a short sale, the owner of the property must have a hardship. Examples of hardships include having to relocate because of a job, loss of a job and having monthly expenses greater than monthly income. The owner cannot have significant liquid assets. An owner cannot ask the bank to take a $50,000 loss when he/she has $100,000 in the bank. If you have a hardship and limited liquid assets, you will likely be a candidate to sell your property as a short sale.
There are many bank owned properties on the market, more commonly known as “foreclosures.” It is important to know that these transactions are negotiated differently in that the banks will not agree to cover costs that typically are the responsibility of the Seller. A Buyer may be responsible for the following costs:
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A survey
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Transfer taxes including State, County and Municipal
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Up to six months of the previous owner’s delinquent association dues.
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Delinquent utility bills. In many instances, the utilities have been shut off for non- payment. The outstanding bills must be paid to turn the utilities back on so that the Buyer can conduct a proper home inspection of the property.
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De-Winterization of the property. The banks will winterize the property to prevent damage such as bursting pipes.
The experienced real estate attorneys of Angelina & Herrick, P.C. are aware of these issues and will not only advise of these hidden costs but will attempt to negotiate with the bank to get them to pay some or all of these costs.