December 11, 2009 - Yesterday we gave you a run down on the temporary and permanent changes that FHA is making in its approval process. So today we thought we’d update you on the federal government’s plan to streamline the short sale process. For owners of Chicago condos this may not be good news because if your lender or mortgage holder agrees to a short sale it could keep you out of foreclosure and lessen the damage to your credit rating. And for anyone interested in purchasing distressed Chicago real estate it may make the process easier and faster.

Basically a short sale is when the bank agrees to accept less than what is owed on a condo or home. This is sometimes agreed upon before foreclosure and after its apparent that the borrower can’t keep up with monthly payments.

The new terms for the standardized short sale program that was outlined in a Daily Herald - Washington Post article is that homeowners will get a one time relocation incentive of $1,500 after a short sale is completed. Another perk according to the article is that mortgage servicers can get $1,000 per short sale and investors can get $1,000 as well. The only drawback in the new plan is that second lien holders will only be reimbursed a maximum of $3,000 per short sale profits.

Bank of America senior VP Dave Sunlin was quoted as saying that, “We’re very pleased. We welcome any effort to reach standardization for all parties.”

So if you’re a Chicago condo owner who is having financial difficulty and can’t get your mortgage refinanced, you may want to consider discussing a short sale with your lender. And for anyone who is shopping for Cheap Chicago Condos, you may want to keep up with any Chicago short sales offered in your area.

Technorati Tags: Chicago Short Sales, Chicago Condos, Chicago Real Estate

This entry was posted on Friday, December 11th, 2009 at 2:09 pm and is filed under Market Update(t) , News(t) . You can leave a response.