Short Sale Case Study – The Unintended Investor in Elk Grove Village
Name – Jay R., from Elk Grove Village, IL
Occupation – IT Manager
Income – $100K
Combined Debt Load – $95K, one mortgage.
Do you qualify for a short sale? Find out here: http://www.foxvalleyshortsales.com/what-are-the-qualifications-for-a-short-sale.php
Reason for Selling:
Jay R. bought his first property, as a small, 1 bedroom bachelor pad, and had no plans to become an investor. But when he got married a few years later, the market values were so low, even though it was slowing losing money, he decided to keep the condo unit as a side rental while he purchased his new home with his wife. The rental unit went along fine until the couple decided to start a family, and the new parents were stunned with newborn daycare rates of $1400 a month. Seeing the condo as a losing asset month after month, and looking to put the losing investment behind them entirely, Jay decided to request a short sale from his lender at Nationstar.
What the Market Said:
A comparative market analysis indicated the value for the condo was $65,000. The market price showed few condos for sale in his area. Only two actives were listed, at $60K and $65K. The good news was that rentals were allowed by the Housing Association. The unit was in good condition and we listed the condo for $65,000. Multiple offers were submitted and we requested highest and best.
Due to the fact that multiple cash offers, over asking price, came in from other investors, the short sale moved quickly to closing. While Jay’s income level did not meet the standard hardship short sale guidelines, Nationstar allowed him to reduce the outstanding loan, with a cash contribution at closing to settle the debt. He did not qualify for the HAFA $10,000 Relocation Assistance program because the property was not owner-occupied.
With a healthy baby boy doing well, Jay and his wife are enjoying parenthood. No longer encumbered by the unintentional investment, the young family has relocated to a sprawling suburban home in Elgin, IL with plenty of room to roam. Both parents are very happy to look ahead to their future, including a adding a new sibling for their son.
Did you know?
In addition to short sales, Fox Valley Short Sales offers full broker service for regular and distressed listings, for all buyers and home sellers, rentals, as well as investors in residential properties across the northern Illinois and Chicago region. All team members are trained to coordinate short sales effectively and retain the full skills and expertise of fully licensed Realtors®, including access to the resources of the local Illinois MLS database.
For more information and details on short sales and more, please contact Jennifer Kinzle, 630-854-4360. Email me direct firstname.lastname@example.org to get on track for 2016.
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