Hillsboro Office 217-532-2525 | Litchfield Office 217-324-4663

Central IL Homes for SaleCentral IL Homes for Sale

  • Home
  • Search
    • Advanced Search
    • Hot Property Alerts
    • Map Search
    • Upcoming Auctions
    • Address Search
    • Trending Searches
    • My Account
  • Featured
    • Our Featured Properties
    • Our Featured Auctions
    • Open Houses
    • Virtual Tours
    • Current Solds
    • Schools
  • Areas
    • Hillsboro
    • Litchfield
    • Coffeen
    • Witt
    • Nokomis
    • Taylor Springs
    • Irving
    • Panama
    • Donnellson
    • Raymond
    • See All
  • Buy
    • Mortgage Calculator
    • Home Buyer Checklist
    • Local Links
    • Resources
  • Sell
    • What’s Your Home Worth?
    • Selling your Home at Auction
    • Seller Tips and Tools
    • Marketing Your Home
  • Rent
    • View all Rentals
    • Landlord List
  • Auctions
    • Upcoming Auctions
    • Selling your Home at Auction
    • Find out More!
  • Appraisals
  • Contact
    • Contact
    • Agents
    • Client Reviews
    • Blog

You Ask, We Answer: Understanding the Real Estate ‘Short Sale’ and How This Process Works

You Ask, We Answer: Understanding the Real Estate 'Short Sale' and How This Process WorksA short sale is something that occurs when a homeowner is not able to make the mortgage payments on time due to a financial hardship. Instead of foreclosing on the property after one or more missed payments, the bank may agree to allow the homeowner to turn the home over to the bank, which will sell it to as close to market value as possible.

Here’s what you need to know about how short sales work and what circumstances might call for one.

Step 1: The Homeowner Provides Information To The Bank

The first step in the short sale process is for the homeowner to submit an information package to the bank. The homeowner will provide information such as the reason for the short sale, an authorization letter allowing the real estate agent to talk to the bank, and a financial statement. In addition, the seller may need to provide an HUD-1 statement as well as a list of comparable homes in the area.

Step 2: The Buyer Makes An Offer

Once the house is put on the market, a buyer can make an offer just as he or she would on any other home. The seller will then have the opportunity to accept any offer that he or she receives from a prospective buyer.

Step 3: The Bank Makes A Decision About The Offer

Once the seller accepts an offer to buy the home on short sale, the seller is responsible for sending information about the sale to the bank. Before the sale is finalized, the bank must approve the buyer’s offer. It could take as little as two weeks or as long as 120 days for the bank to approve the offer.

However, not all short sales are immediately approved. The seller’s bank bank might decline the buyer’s offer for one reason or another. A bank may decline a short sale offer if the bank negotiator thinks the house is worth more than the buyer’s offer or if the seller violates a clause in the short sale agreement – such as moving out of the property and violating a clause that states only owner-occupied properties are eligible for short sale.

Buying a home that is being sold as a short sale requires patience and an ability to move at the bank’s pace. Working closely with an experienced lender or mortgage broker may make it easier to get through the process without a lot of hassle or drama. For more information about short sales, or to complete a short sale on your property, contact a local real estate agent today.

Posted in: Blog Tagged: Home Selling, Short Sales, Short Selling

Search Smarter

Did you know the hottest homes for sale in Hillsboro often sell within days of being listed? Don’t miss out! Set up your own custom property alert so you can be notified of the newest homes as they hit the market! Simply click the button below and choose the qualities that you want most in a home and save your search to start getting alerts today!

New Property Alerts

As local Hillsboro Real Estate Agents we also have access to homes before they hit the market and can show you more homes and information that are only accessible in the MLS. If you would like to set up a time to go over your real estate needs, please free to contact us at your convenience. There is no obligation and or pressure… we hope to hear from you!

Post navigation

« What’s Ahead For Mortgage Rates This Week – Sept 2, 2014
Buying Land to Build a New Home On? Don’t Forget These Three Important Considerations »

Contact Us Now



(217) 532-2525 Hillsboro Office
(217) 324-4663 Litchfield Office

info@mcrealty.net
Hillsboro Office

551 S. Main St.
Hillsboro, IL 62049

Litchfield Office

410 N Monroe St.,
Suite 100
Litchfield, IL 62056

Hillsboro Company License #478.025162
Litchfield Company License #477.012410

Follow Us Now!


Quick Search Tools

  • Easy Search
  • Advanced Search
  • Address Search
  • Upcoming Auctions
  • Home Valuation
  • Map Search
  • My Account
  • Listing ID Search
  • Contact

Chat with us Now!

Click here to visit our Facebook page to chat with us now!

© 2025 · MCR Realty Professionals, Inc. · 217-532-2525 Hillsboro Office · 217-324-4663 Litchfield Office · MCR Agent Office · Agent IDX Login · Sitemap · IDX Sitemap · IDX Sitemap · Privacy Policy · Terms of Service · Hillsboro IL Homes for Sale
Disclaimer - All Rights Reserved by MCR Realty Professionals, Inc.

AREAS WE COVER:

62049, 62089, 62056, 62017, 62075, 62094
Hillsboro, Litchfield, Coffeen, Nokomis, Witt

Log in · Real Estate Websites by Real Estate Websites by YourSiteNeedsMe.com