Top 10 Reasons Why You Should Not Do A Naperville Short Sale By Yourself

Top 10 Reasons Why You Should Not Do A Naperville Short Sale By Yourself

Doing a Naperville short sale by yourself is not a good idea at all!

In the complex world of short sale, the best thing you can do to have a successful short sale is to hire an experienced and qualified Naperville short sale agent.

Here are the top 10 reasons why you should never attempt an FSBO (for sale by owner) short sale:

1. Do you have an idea how to properly price your Naperville short sale property at a price that the lender will still approve? Do you know how to do a comparative market analysis in order to substantiate the price of your short sale property?

2. Do you know how to effectively market your home to the widest pool of potential buyers possible? An experienced Naperville short sale agent will have the skills, tools, and connections to do all this for you. Naperville short sale agents have access to various marketing platforms where your short sale property could be listed and exposed to not just buyers, but buyer’s agents too. Do you have the time and skill to create effective marketing and promotion that will highlight your home’s assets?

3. Is your schedule flexible for home showings? Buyers won’t work around your schedule. If you have too many showing restrictions, buyers will be quickly turned off and move on to the next available home for sale. If you hire a Naperville short sale agent, he or she will always be available to show your home to potential buyers.

4. Do you understand the entire short sale process? Short sales are very complicated and canbe confusing for a first-timer-- with all the parties and paperwork involved. Save yourself the time and stress of studying the ins and outs of short sales by tapping into the expertise and knowledge of an experienced Naperville short sale agent.

5. Do you know how to qualify buyers? Can you tell if they are serious and committed enough to buy your home? Naperville short sale agents who have plenty of experience dealing with lenders and buyers know that it is not enough that a buyer is willing to purchase. Buyers should also be financially capable to buy the home. Naperville short sale agents have established ways to determine if a buyer is really serious and capable to purchase a short sale home.

6. Do you have time to spend hours on the phone with the lender, going back and forth with phone calls, faxes, and emails? Naperville short sale agents have systems in place to effectively correspond with your lender.They have established contacts and professional relationships with different lenders thus giving them the skills to negotiate your short sale.

7. Do you have a thorough understanding of the deficiency laws in Illinois and the tax ramifications of a Naperville short sale? Do you understand the foreclosure process and timelines in Illinois?

8. Can you negotiate effectively with your lender for the best terms for your short sale? Have you done this successfully before?

9. What is your back up plan in case the home appraisal comes out too high or if you are forced to choose a HAFA short sale instead of a traditional one? What will you do if the buyer backs out and you are just inches away from foreclosure? What will you do if you are asked for a cash contribution?

And the top reason why you should hire a Naperville short sale agent is...

10. The lender pays the closing costs of your short sale which includes the commissions of an experienced Naperville short sale agent who will work on your behalf. You can have a professional handle the entire short sale to save you time, negotiate with your lender, and buffer you from the stress -- at absolutely NO COST to you!

With all these reasons why should you attempt to do a Naperville short sale yourself?  Doesn’t it make more sense to hire a Naperville short sale agent now?

If you have questions or feel you may qualify for a Naperville short sale, please contact certified Naperville short sale agent Teresa Ryan on 630-276-7575 for a free consultation.

Teresa Ryan
Broker/Owner, CDPE
Ryan Hill Realty
1001 E. Chicago Ave., Ste. 103
630-276-7575
TRyan@RyanHillRealty.com

 

How to Write a Hardship Letter for Your Naperville Short Sale

How to Write a Hardship Letter for Your Naperville Short Sale

What is a hardship letter and how do you write one for your Naperville short sale?

Before a lender approves a short sale, the lender will ask the seller to submit a hardship letter. A hardship letter is a statement of facts describing how the seller‘s hardship came about. It is an appeal to the lender to approve the short sale of your home since you can no longer afford to make the monthly mortgage payments.

Writing a hardship letter is not rocket science. It’s really simple. If you can write a letter to a friend, then you can write a hardship letter for your Naperville short sale.

What Makes a Good Hardship Letter?

Most people think that a hardship is based only on financial issues, but this is far from the truth. Any situation that makes it difficult for a homeowner to continue paying the monthly mortgage will qualify as a hardship.

The seller’s reason for a hardship should not be solely due to the decline in the value of their home.  While an underwater home is a qualification for a Naperville short sale, it should not be the only reason you are asking the lender to approve your short sale.

Ask yourself this simple question before you write your letter: “Since you took out the home loan, has your situation or financial capability changed?” If your answer is “no,” the bank may think that you can still afford to pay your monthly mortgage or if they do grant the short sale, they might ask you to pay the deficiency since you are still capable.

If your answer is “yes,” then check if your situation falls under one of these situations that lenders accept as a qualified hardship:

• loss of employment
• reduction of income (or loss of employment of spouse)
• job relocation
• medical emergency or illness
• death in the family
• divorce or separation
• military service
• having an adjustable-rate loan
• incarceration
• unexpected home repairs or maintenance
• increased expenses and huge debts

Reasons that lenders do not accept as valid hardship and you should not include in your hardship letter are:

• big purchases like a boat or an expensive family vacation
• moving when you don’t have to
• you don’t like your neighbors or the home

Lenders do not consider these as valid hardships since they could be reasonably avoided and overcome. The keywords to remember in stating a reason for hardship is the situation must be “inevitable” or “unavoidable,” something beyond the homeowner’s control.

Writing the Hardship Letter

To help you outline your hardship letter, you have to explain three things:

• How you got into your present hardship
• What you have done so far to try and overcome or get out of the situation
• Why your situation is permanent and there is nothing you can do to change it

It will also be useful to include the following to substantiate your hardship:

• Numbers and percentages. This is a clear and simple explanation of loss or reduction of income or cash flow. Instead of saying you need to borrow money just to pay your mortgage, you can state the dollar amount and source of the debt like “I have borrowed $15,000 against my credit card just to make my mortgage payments for the past 5 months, and I have maxed out all my credit cards.”

• Honestly present your worst situations and appeal to emotion. Be truthful. If your beloved dog of 10 years has cancer and the vet bills are adding up, or you only have 3 hours of sleep a night since you took on two jobs to pay for your sick mother’s mounting medical bills and to take care of her, make sure to paint the worst picture and keep going downhill while maintaining honesty. It should sound like a desperate plea for an unavoidable and hopeless situation in order to appeal to the lender’s emotion. Have your Naperville short sale agent read your letter and if your agent doesn’t feel sorry for you after reading it, then you need to improve your letter.

• Use plain and simple words. It should be simple enough for a 6th grader to understand. Remember you aren’t writing a resume cover letter to impress, but a plea for the lender to consider your hardship and approve the short sale.

If you feel you are qualified for a Naperville short sale and need guidance in writing your hardship letter, please contact certified Naperville short sale agent Teresa Ryan on 630-276-7575 for a free consultation.

Teresa Ryan

Broker/Owner, CDPE

Ryan Hill Realty

1001 E. Chicago Ave., Ste. 103

630-276-7575

TRyan@RyanHillRealty.com