Northlake IL Short Sale Experts

Looking for a Short Sale Expert? Look no further! Northlake Realty is here to help you. To avoid losing your home to a foreclosure, call us today.

A real estate short sale takes place when the lender, either a bank or Mortgage Company, decides they will discount the amount of money that is due on the balance of the loan. Therefore, the home can then be sold for less than the remaining balance of the loan. This can allow for some great deals that may prevent a foreclosure from occurring.

In order for a homeowner to qualify for a short sale, they must fit into certain criteria. The first is they must be in Financial Hardship. This means there is a situation that is prohibiting you from affording your mortgage. The second is having a Monthly Income Shortfall, or not having enough money per month. Your lender will see that you actually cannot afford your mortgage, or you will not be able to do so soon. The third and final criterion is Insolvency, or when your lender sees that you do not have substantial liquid assets that may allow you to pay down your mortgage.

Foreclosure Avoidance Options

Often times, foreclosures can be avoided, which would save the family from the overwhelming financial challenge. There are numerous options available to residents for foreclosures, which include but are not just limited to short sales. In the following sections is more information about these other possible solutions:


The simplest solution to a foreclosure is a reinstatement; however, it can often be the most difficult as well. In a reinstatement, the homeowner requests the full amount that is owed to the mortgage company and they pay it. In this solution, the lender does not have to give approval and the mortgage will be reinstated up until the day before the final foreclosure sale.

Forbearance or Repayment Plan

When the homeowner negotiates with the mortgage company to allow them to repay any back payments they have over time, this is called forbearance or a repayment plan. In this plan, the homeowner will generally continue to pay their usual mortgage payment while also paying a portion of their back payment as well.

Mortgage Modification

When your mortgage is modified, it generally means that there was a reduction in one of the following: the principal balance on the loan, the interest rate on the loan, the terms or the loan, or any combination of the three. Modifying any of these areas will typically result in the homeowners paying a lower amount, which creates a more affordable mortgage.

Rent the Property

If the homeowner has a low enough mortgage payment that market rent will permit it to be paid, they can then rent their property out so they can use that rental income to pay their mortgage.

Deed-in-Lieu of Foreclosure

Instead of going through the foreclosure process, a homeowner can return their property to the lender, which is known as a Deed-in Lieu of Foreclosure. In order to consider this option, lender approval is needed and the homeowner would be required to vacate the property.


Personal bankruptcy may be a viable solution when a homeowner has debts that are not mortgage related, but are causing them to not meet their mortgage payments. In this situation, if personal bankruptcy can eliminate these debts, then this may be an applicable solution.


In order to be able to refinance their mortgage, the homeowner must have adequate equity in their property and show that their credit is still in good standing.

Service members Civil Relief Act (military personnel only)

If deployment is causing a member of the military to experience financial stress, and if that person can show that their debt was amassed before they were deployed, they may qualify for help under the Service Members Civil Relief Act. There is a network of attorneys, who work with service members to determine if they qualify for this relief, through The American Bar Association.

Sell the Property

In the homeowner has sufficient equity, they can then list their property if they have a qualified agent who will guide them through the foreclosure process.

Short Sale

A qualified real estate agent can be hired when a homeowner owes more money on their property than the property is currently worth, and the real estate agent can help to market and sell the property as a short sale through a negotiation with the lender. This process usually necessitates the property to be on the market and the homeowner must also have financial hardship to qualify. If the homeowner has had a material change in their financial stability between when the home was first purchased and the date of the short sale negotiation, it can be defined as hardship. Other hardships that are acceptable include, but are not limited to, an increase in the mortgage payment, losing a job, divorce, excessive debt, unexpected or forced relocation, etc.