Guide to The Mortgage Short Sale | Avoid Foreclosure

What is a Short Sale?

A short sale occurs when a mortgage lender or lenders agree to accept less than the total amount owned on a real estate property in order to facilitate the sale of that property.

This is generally accomplished when the owners of the property have fallen behind on their mortgage payments and the short sale becomes an option the property owner and mortgage lender agree to complete over foreclosure.

• A short sale allows the homeowner or property owner to sell the property and avoid having a full foreclosure further ruin their credit and potentially impede their economic future for years to come.
• A short sale allows the property to be sold and the lender to recoup some of it's losses. It is very costly for a lender to foreclose on a property, so the short sale becomes an option.

What Qualifies a Property for a Short Sale?

• In most cases, the owners of the property must be at least 30 days behind on their mortgage payments and facing potential foreclosure action.
• Owners generally must show a financial inability to get caught up on their mortgage payments as well as the further challenges to continue timely payments. A recent hardship, such as a loss of employment or a divorce, may favorably play into the analysis.
• The property value on the open market must also be less than what is owed.

Why Would a Lender Accept Less Than What is Owed?

• Foreclosures are very expensive.
• Foreclosures are very time consuming for mortgage lenders in Washington State.
• The lender rarely recoups their money.

You Should Know That There Are Risks Associated with Short Sales, click here.

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For more information on the Mortgage Short Sale process and how to get advice on selling & tips to avoid foreclosure, contact us.

SHORT SALE PROPERTY SALE DISCLOSURE

The information provided above is general in nature and is prepared to alert the Short Sale Seller to potential issues, but is not specific advice to the Seller's specific situation. You should consult an Attorney for specific advice as to your situation.