The Real Estate Bubble in Palatine
Due to the real estate bubble, many Americans lost a lot of equity on their homes. Many Americans in Palatine, Illinois and the greater Chicago area have come face to face with foreclosure without a way to stall the worst from happening. Fortunately, there are mechanisms and options available to avoid foreclosure.
One of the alternatives to foreclosure is called a short sale. Essentially, a short sale is an agreement between the bank and the borrower to take a considerable loss on a property. The home is sold for less than it is worth, and the bank loses money on the mortgage. However, when agreeing to a short sale, both parties feel that incurring a loss on the property is more preferable and favorable than it is for the borrower to default on the loan.
While this sounds bad at first, consider the benefits for both parties. On the one hand, the bank (while still incurring a loss) does get to recoup a substantial amount of their initial investment in the mortgage. On the other hand, the borrower does not default on the loan and does not have to go through foreclosure proceedings. Sometimes a short sale may be more attractive to a lender than a deed in lieu of foreclosure, too.
Call Us Today
If you live in Palatine, Illinois or the greater Chicago area and are facing the possibility of foreclosure, it is in your best interest to seek the help of a qualified professional. The Law Offices of Gilbert C. Schumm want to help you determine the best course of action to save you years of unnecessary financial troubles and headaches. We have been serving clients in the Chicago area for over 35 years. Call us at 847-559-9109 or contact us online for a free initial consultation.