Chicago IL – Many agents run into problems with short sales that have more than one mortgage. For example, we had a short sale with a first mortgage, a second mortgage, and a third lien. The third lien was an old credit card judgment. It had to be paid off to sell the house. Here is what happened.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

The first mortgage was only willing to pay $3,000 to any second mortgages or liens. The second mortgage wanted $4,500. The credit card judgment wanted $5,000. How were we going to get the extra money for them?

I had to escalate the file with the first mortgage. I told them that they had two options. Option one: Pay the first and second mortgage and net X. Option two: Foreclose and net X minus $15,000. I have a calculator that puts all these numbers together. In addition, I have the proof to back it up.

Here is an example of that proof. There was recent short sale where the first mortgage stubbornly refused to give enough money to the second mortgage. As a result, they lost around $45,000.

I found out about this house because I met the first buyers at an Open House. They were trying to buy a short sale and were offering $272,000. The first mortgage was RBC, owed $337,500. The 2nd was Bank of America, owed 70k. The listing agent submitted the short sale offer to both companies. RBC said they would only pay $1,000 to the second mortgage. The second mortgage wanted more.

The short sale dragged out for months. Finally the buyer paying $272,000 walked. The listing agent put the house back on the market. The housing market had declined. Now the only offers she could get were around $230,000. The house ended up selling for $229,000.

RBC was greedy and wouldn’t offer enough money to BOA. As a result, they lost around $45,000. Was that a smart business decision? I don’t think so. Now, back to my short sale story.

I sent this and several other similar examples to the people at the first mortgage. They agreed to pay the second mortgage $3,000 and completely pay off the credit card judgment. The buyer agreed to pay the extra money the second mortgage wanted.

So we got the short sale closed. The seller was able to wipe out over $70,000 in upside down debt and move on with her life. Do you want to short sale your property and never pay the bank another penny? I can help you do that.

Send me an e-mail at myrealtorphil@gmail.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Chicago Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealtorphil@gmail.com.

View My homes for sale at www.BetterLivingRealty.com.

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.
We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved.

Chicago IL – I had a negotiator at one of the largest lenders in the US try to push me around last week. I’ve spent the last 12 months figuring out all the rules for different loan owners, or insurers. I’m talking about FHA, VA, Fannie Mae, Freddie Mac, and “sliced and diced.”

You see, the people who own the loan (Fannie Mae, Freddie Mac, or “Sliced and Diced”) make the rules for a Chicago Short Sale. The one other common parties that makes the rules are the federal mortgage insurers, FHA, VA, and USDA. I’ve done a lot of research and figured out all their rules.

80% of all loans are owned or insured by someone other than the company handling them. That means in most cases, Wells Fargo, Bank of America, or JP Morgan Chase are acting on behalf of the actual owner (or insurer) of the loan. This entity makes the rules. That makes getting short sales approved much easier.

This was an FHA loan, which means FHA’s guidelines dictate whether or not the short sale is approved. Here’s what happened.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

FHA puts out a letter called “Mortgagee Letter 2008-43.” It details exactly how the lender servicing an FHA loan is supposed to negotiate on a short sale. This letter is 16 pages long and gives them specific directions on what percentage of the appraisal they can accept, how much to pay agents, etc.

Because of a prior experience, I had read thru this letter 2-3 times. Bottom line, I know a little bit about FHA’s rules for short sales. The problem was the short sale negotiator didn’t want to follow the rules!

Instead she made up her own rules! She told me that the buyer and seller had to split the cost of the title insurance. However, page 12 of Mortgage Letter 2008-43, says that they are allowed to pay the standard title insurance costs. In our area, the sale’s contracts are written with the seller paying for title insurance.

But, this negotiator didn’t want to allow that rule. I had to argue back and forth with her for 2-3 days until she finally relented. Here is the problem I have with these lenders.

If your investor gives you specific instructions on how to negotiate a short sale, then follow those instructions! If you are short selling, make sure you agent understands the rules laid out by the owner or insurer of your loan. That way, if a negotiator tries to break the rules, then they can keep them in line.

If a negotiator is lying to them, they can ask for their manager. When they talk to the manager, they will explain how they are breaking the rules. Your agent can even contact the investor or insurer directly and tell them about the problem.

Do you want to short sale your property and never pay the bank another penny? I can help you do that.

Call me at (312) 953-6725 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can e-mail me at myrealtorphil@gmail.com.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Chicago Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealtorphil@gmail.com.

View My homes for sale at www.BetterLivingRealty.com.
Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.
We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved.

Chicago IL – You can dispute negative items on your credit. In some cases, the negative item can go away in 30-60 days. This doesn’t always happen, but it’s nice when it does. This may seem overwhelming at first. But stick with it and you’ll see that it does work. With a little persistence, most items can be removed permanently.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

You are considered innocent until proven guilty. That means it is the credit bureaus job to determine if a negative item should stay on your report. Many people have inaccurate information on their reports.

Federal law says that you can dispute anything in your report. We recommend you send a detailed letter by certified mail to the credit bureau. Yes, you can dispute online, but we don’t recommend that. Why? There is no paper trail.

Your letter should have detailed info on your dispute. Put in your name and address. In addition, identify each item you are disputing. Say why you are disputing it and ask them to remove it from your report. File copies of the letter, envelope, and certified mail receipt. You can even mail return receipt requested. Then you have proof they received your letter.

The bureaus have 30 days after they receive a dispute to investigate it. If they can’t verify the negative item, then they must remove it from your record. Credit bureaus issue a lot of requests for verification to lenders every day. The people at the lenders get backed up.

Files get misplaced. Banks and lenders are sold, merged, or go bankrupt. (Everything gets misplaced then) As you can see, not all disputes get a reply. This works to your benefit. If the credit bureau doesn’t get a response, then they have to remove the item.

Everything negative on your report can be disputed, even info that is correct. Do not give too much information to the bureau. We recommend that you mark the item you are disputing. Then state why you are disputing it. Nothing more is needed. If you give them lots of info, they may use that info to verify they item.

One more tip: After mailing a dispute letter, let the issue sit for 45-60 days before disputing it again. If you contact the credit bureau again in the 30 day window, they can automatically extend it for 30 days from that date. That gives the bureau more time to verify the item.

Here are a few reasons you can dispute a negative item.

1. Not my account.

2. Wrong Credit Limit.

3. Wrong Account Number.

4. Wrong date of last activity.

5. The Judge gave the account to my ex in the divorce. Be sure to send them a copy of the divorce decree.

6. I paid on time that month.

This all means that you can get your life back to normal after a short sale. You can get rid of the debt, repair your credit, and get your life back to normal. Do you want to short sale your property and never pay the bank another penny? I can help you do that.

Call me at (312) 953-6725 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can e-mail me at myrealtorphil@gmail.com.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Chicago Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealtorphil@gmail.com.

View My homes for sale at www.BetterLivingRealty.com.

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.
We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved.

Chicago IL – Most people think that a short sale will be the kiss of death to their credit. That is the one big advantage of a short sale over a foreclosure. Anything and everything bad on your credit can be fixed. It’s called the dispute process.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

In my opinion, many lenders incorrectly report credit on consumers all the time. What if the consumer doesn’t understand how the process works? The consumers suffers unjustly! Just like the banks can work the system for their benefit, you can work the system to your benefit.

The information here is about how to dispute alleged errors. The law says correct but negative information should stay on your report. But, it is completely legal to challenge anything on your credit report.

It does not cost you, the consumer, any money to dispute something. In fact, if the Credit Bureau doesn’t follow the federally required procedure to process your claim, they can be liable for up to $1,000.

Here is how to process works.

First, order a copy of your credit report. I prefer the printed version. That way you can read through the entire report and make notes. You can highlight all the things that need to be fixed.

Next, rank those items by priority. The ones that are doing the most damage should be disputed first. Here are some common items that negatively affect your credit: Foreclosure, Loan Default, Late Payments, Collections, Repossession, and Bankruptcy.

A Short Sale will show up on your credit as a Late Payment and/or “Settled for less than full amount.” This is still much better for your credit rating than a foreclosure. As far as disputes, it is much easier to legally challenge.

After that, you will want to dispute the items. Send all your disputes by certified mail. That way you have proof of when you sent the dispute. Then, you wait for the dispute process to be completed. Tomorrow, I will give more examples of how to dispute a questionable item.

Do you want to short sale your property and never pay the bank another penny? I can help you do that. Call me at (312) 953-6725 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can e-mail me at myrealtorphil@gmail.com.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Remember to visit my short sale blog often for updates and news www.Chicago-ShortSaleBlog.com

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealtorphil@gmail.com.

View My homes for sale at www.BetterLivingRealty.com.

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.
We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved.



Chicago IL – I recently met a realtor who sells properties in a beach town. “Short sales take 9-12 months. The banks are so hard to deal with”, she said. She mentioned short selling a customer’s property. The sellers were two doctors that had to take a promissory note. The sale was for 900k, so the loss must have been above average.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

In this case, her customer’s were ok with a promissory note. I’m here to discuss what is necessary to short sale and not get a promissory note. Negotiating short sales on more expensive homes is much different than your average short sale.

The most common loan types that will give you a complete release are Fannie Mae, Freddie Mac, FHA, and VA. Most of them won’t loan on a mortgage over $417,000. There are a few exceptions, but that is the general rule. If your mortgage amount is more than 417k, then more than likely Fannie, Freddia, FHA, and CA do not own your loan.

The loan is probably owned by the bank you originally got it from, or it has been securitized. Most of these type of loan owners will not grant a release. So you will have to use other methods. First, you can tell them that you are broke. If that true, then they may let you off without much ado. If you have assets, then you will need to use different tactics. You can hire someone to do a “Loan Audit.”

This is where they go thru your loan file and search for any violations of lending laws. Maybe they didn’t give you the proper federally required mortgage disclosures. Maybe the mortgage broker or lending company wasn’t properly licensed. A loan audit will often help your case.

But, it isn’t an “end all, be all”. I’ve seen people promote it as that. Another thing you can do is hire on a good attorney. You will want to deal with someone who is a consumer advocate. They will know how to use the law to negotiate from a position of power on your short sale.

In my opinion, the best way to hire lawyer in this case is on a contingency. I pay you X when you get me what I want. Some people think lawyers drag cases on just to earn more money. Using a payment arrangement like this will help you avoid that.

However, I think the most important thing you can do is to hire on an experienced short sale agent. Ask them if they have negotiated any short sales where the lender asked for a promissory note. Then, ask them what they did to negotiate away the promissory note.

The good short sale agents will usually know a good attorney. They may have experience dealing with your bank. Bottom line: They are the person who can point you in the right direction so you can short sale and walk away with a complete release from the debt.

Do you want to short sale your property and never pay the bank another penny? I can help you do that. Call me at (312) 953-6725 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can e-mail me at myrealtorphil@gmail.com.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Chicago Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealtorphil@gmail.com.

View My homes for sale at www.BetterLivingRealty.com.

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.
We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved.

Chicago IL – Before the crash, the subprime mortgage market was hot. Wall Street Firms were eager to get their hands on the high interest mortgages being issued. They could buy a subprime loan and sell it for a profit.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Based on my calculations, they could mark up the price of the mortgages they purchase by five or ten percent. A five percent markup on a $400,000 loan is $20,000. When you could do that on a thousand loans, it meant serious profit.

When other Wall Street Firms say them making money, they jumped into the business. This created a boom. Lenders knew any subprime mortgages they issued could be sold quickly and easily. I’m guessing that the Wall Street Firms were beating on their door trying to buy the mortgages.

Most of the loans were probably sold by the Wall Street Firms. They securitized the bundles of loans, got Moody’s or another rating agency to stamp them AAA, and then sold them to pension funds or on the open market. Pensions, Hedge Funds, and other investment entities liked these investments because of the high interest rate earned and perceived lower risk.

Essentially the Wall Street Firms and lenders were gorging themselves on these mortgages. They were playing the game of “Hot Potato.” Everyone was making a lot of money. And, there was no risk because they were able to pass the risk onto the Pensions and Hedge Funds.

However, once the housing market stumbled, then I’m sure the pension funds stopped buying. And the Wall Street Firms and Lenders that had gorged themselves on these mortgages were caught holding the Hot Potato. This cause the housing market to dry up.

Wall Street Firms, Large National Banks, and the small lenders giving the loans ran out of funding. This drove a lot of them to bankruptcy. This is why I wouldn’t feel bad walking away from your mortgage and not wanting to repay the lender for their loss. We didn’t cause the boom and we sure didn’t cause the bust. It was all a gamble for the lenders and Wall Street Firms.

They knew the risks. If everything had gone right, then I’m sure they would have profited. Who would have been paying them their profits? We would have! But, you and I, the Average Joe, can’t afford to gamble for a living.

Do you want to know how to short sale your property and never pay the bank another penny? I can help you do that. Call me at (312) 953-6725 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can e-mail me at tom@teambrealty.com.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Chicago Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealtorphil@gmail.com.

View My homes for sale at www.BetterLivingRealty.com.
Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.
We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved.

Chicago IL – I know a guy that wiped out 300k in mortgage debt. I’ll call him Tom. The name and some of the details have been changed to protect his privacy. Tom owed a lot of money on his house. He owed 600k on a first mortgage and then another 300k on a second mortgage.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Tom’s income dropped dramatically. He almost lost his home. He finally got a new job and was able to pay the first mortgage payment. Because they were closer to foreclosing, he found a way to pay them. But, he didn’t have enough money to pay the second mortgage.

So Tom didn’t pay the second mortgage. He was doing everything he could to save his home. The second mortgage called Tom a lot. “If you don’t pay us, then we will file for foreclosure”, they would say. Twelve months went by and no one filed for foreclosure.

Tom was quite surprised. “I had no idea when the sheriff was going to come out and kick us out”, Tom told me. We told him that most second mortgages never file for foreclosure. (Here is why they hardly ever do. In a foreclosure, the first mortgage gets paid off before the second mortgage gets a dime.)

In Tom’s case, his home’s value had dropped below the 600k he owed to his first mortgage. This meant that if the second mortgage did foreclose, then they would only lose more money. That is not a winning business proposition.

We also told Tom that he could probably settle with his second mortgage for five to ten cents on the dollar. That means he can eventually settle for $10,000 to $20,000. We first talked to him over a year ago.

Today, Tom still hasn’t made a single payment on his second mortgage. He has caught up all the payments on his first mortgage. In addition, he has been able to get back on his feet financially. He expects that he will settle with the second mortgage in a year or two. The first priority is getting all his other finances completely in order.

This story illustrates that you are not doomed. Many people owe more than their home is worth. They are able to short sale and get rid of the debt. Or, they can use creative strategies to reduce the level of debt. You can get your finances back in order with a little work and time.

Do you want to short sale your property and never pay the bank another penny? I can help you do that. Call me at (312) 953-6725 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can e-mail me at myrealtorphil@gmail.com.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Chicago Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealtorphil@gmail.com.

View My homes for sale at .
Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.
We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved.

Chicago IL – Everyone gets scared when they can’t pay a debt. “Am I at risk of going to jail? Will my friends find out? Will the bank sue me and take everything I own? Will they garnish my wages? Will they levy my bank account?” Here is a real life example. She didn’t have the money and stopped paying cold turkey.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

I know a person who stopped paying on a bunch of debts. We’ll call her Jill. Jill short sold her house over two and a half years ago. Her loan was with Countrywide, now owned by Bank of America. The owner of the loan was a “sliced and diced” trust.

I’ve called these “zombie debt owners”, because they usually don’t chase you down after a short sale. The owner of the loan lost around $85,000. Long story short, she hasn’t paid a dime on the short sale loss. She got letters and phone calls from Bank of America for about 6 months. After that, they calls stopped.

She hasn’t heard anything from them since then. And she doesn’t expect to hear anything more. The nice thing about the “sliced and diced” loans is there is no single owner. There are probably 10,000 owners of her loan scattered around the world. None of the owners has time to collect from her and Bank of America is too busy with all the other loans on their books.

In addition to the short sale, she stopped paying on five different credit cards with over $15,000 owed. She lost her job and simply did not have the money to pay them. She is still getting phone calls today. Sure, she could get them to stop calling by sending them a letter.

But, they don’t bother her enough to do that. So they just call. As of today, only one of those creditors has file a lawsuit. The funny thing is they filed the lawsuit and then just let it sit there. They didn’t file anything else for another 18 months. As of today, the case is still sitting in limbo. More than likely, it will be dismissed for lack of activity.

Even if the credit card company does get a judgment, they still have to collect on it. The fact is, only 15% of all judgments are ever paid. But, at the rate their lawyers are going on the lawsuit, they probably won’t ever get a judgment.

As you can see, Jill was able to walk away from around $100,000 in debt and will probably never pay them a dime. She could settle with the credit card companies in the future for fifteen cents on the dollar. If so, then it will be because she wants to, not because she is getting forced to do it.

Are you interested in selling your property as a short sale? Call me at (312) 953-6725 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have. Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Chicago loan modification kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealtorphil@gmail.com.

View My homes for sale at www.BetterLivingRealty.com.
Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.
We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved.

Chicago IL – Today, I’m going to give you the step by step instructions on how to avoid paying your lender after a short sale. These steps can also be used to avoid paying on any other debt, such as a credit card, second mortgage, or a judgment.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

If your short sale lender will not give you a complete release, then short sale the property. Most of the time, you will only get mail and phone calls from the lender’s debt collection department.

If the lender forces you to sign a promissory note, then sign it and never make a payment. It will take a lot of work on their end to collect from you.

It takes time for the lender to move your file out of the collections system. This will last for anywhere from 1 month to 6 months. The rest of this post is simply my opinion. It is not legal advice. I am just telling you what I would do if I was in this situation.

Simply tell the debt collectors that you are trying to avoid bankruptcy. Do not give them any more information! Don’t dispute that you owe them money. And definitely don’t agree to pay them anything, or tell them that you might be able to pay them. In my opinion, you are better off just hanging up on any collector that calls you.

Anything you say can and will be used against you. This is why you are better off not saying anything. After a while the phone calls and mail will stop. Hopefully you will never hear from your lender again.

This will be the case for most short sale sellers. I estimate the percentage of people who won’t hear from their lender again to be between 80% and 95%. The only thing you will have to worry about is if they sue you.

In that case, you will probably want to hire a lawyer to represent you. Interview them before you hire them. Make sure they specialize in that type of law. Ask them what type of legal argument they will use to defend you. Don’t hire them unless they can explain what they will be doing.

I would not hire a lawyer until I knew for sure that a lawsuit had been filed. The reason I say this is that a lot of debt collection firms threaten lawsuits with no intention of ever filing. They use this as a charade to get people to pay. Why are they doing it? Because it works! Most people freak out and pay them.

Hopefully you won’t make that mistake. In my opinion, what these debt collection companies are doing is a breach of the Fair Debt Collection Practices Act. The act specifically states that you can’t threaten to sue unless you intend to follow thru with the threat.

You are best off “letting sleeping dogs lie.” Until you have been sued, hiring a lawyer will only bring unwanted attention to your case.

Let’s summarize. Step 1: Don’t pay. Step 2: Don’t talk to the debt collectors. Step 3: File every single piece of mail send to you. Step 4: Believe that time is on your side. Just give the lender time to forget about you. I estimate that 80% of the time they will forget about you and move on.

The above is simply my opinion and is not legal advice. I recommend that you seek with competent legal advice prior to making any decision. Tomorrow I’ll give you some stories from our customers that back up what I’m saying here.

Are you interested in selling your property as a short sale? Call me at (312) 953-6725 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have. Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Chicago loan modification kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealotrphil@gmail.com.

View My homes for sale at www.BetterLivingRealty.com.
Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.
We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved.