If you've been paying attention to local news lately, you may have heard that Chicago's real estate market has finally hit bottom and rebounded -- property values are slightly up and sales are on the rise as well. For some homeowners, this may seem like a good time to attempt a short sale. After all, 25% of the homes in Chicago are underwater -- some of those homeowners may want to get out of a bad investment.
When considering a short sale, there are several factors that should influence the decision. The first factor should always be the difference between the property's value and the amount owed. When a property is significantly underwater, it may require a cash contribution from the seller to get the bank to accept a short sale.
A second factor to consider is the number of days properties spend on the market. This number will vary from area to area, and can indicate how long a comparable property will spend on the market. If your neighborhood has a rather high days on market number, then you may want to reconsider a short sale. If it is taking properties a long time to sell, then yours will likely be no different. It's also worth noting that properties that have been on the market a long time may appear to be less desirable.
Quite simply, if you are considering a short sale, but your neighborhood is one of the slower areas, then you might want to reconsider. If time is an important factor, then you might want to consider other options. For instance, a deed in lieu of foreclosure or a Chapter 13 bankruptcy filing may accomplish your goal in less time and with more predictable results.