Contracts
What is a 'short sale' and what unique contract challenges does it present in Illinois?
AA sale completed very quickly, typically within 2 weeks
BA sale where the proceeds are less than the mortgage balance, requiring lender approval before closing✓ Correct
CA sale for below the property's assessed value; triggers automatic IDFPR review
DA sale contingent on the buyer selling their current home first
Explanation
A short sale occurs when the property's sale price is less than the outstanding mortgage balance. The lender must approve the short sale and agree to accept less than the full loan payoff. This creates unique challenges: the seller cannot close without lender approval, approval may take months, and approved terms may require seller contributions. A short sale can avoid foreclosure but requires patience from all parties.
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