With the past market crash Short Sales are becoming a very common occurrence in our present market. So, what are they and how will they benefit a seller?
A seller will often try to short sale their house when they are no longer able to make payments, they might owe more on the home then what it’s worth or they wish to avoid going into a foreclosure. The point of a short sale is letting the mortgagee be able to get out of their current obligation for an amount that is usually less than what they owe. Banks prefer a short sale because it cost them less money to go through a short sale then a foreclosure process. When selling via short sale there are two steps before the final price can be confirmed. The sellers need to approve the sales price and conditions and then they will submit it to their bank/lender who have to also agree to the conditions of the sale. This process generally takes longer than a traditional sale. Anywhere from 3-6 months depending on the bank.
A seller benefits from selling via short sale because usually the bank/lender will take less than what is owed. They also avoid a foreclosure on their credit score. Usually a short sale will last about 3 years on a credit score while a foreclosure will last 7.
Some more information regarding short sales can be found on my website or the Washington State Department of Financial Institutions has some great information regarding short sales on their website.
A short sale can be a difficult, highly involved and a timely process for any seller. I highly recommend working with a broker who has a Short sale and Foreclosure resource designation. They have special training, greater knowledge and generally more experience with working on these type of projects.
With that being said, if you are looking into selling via short sale. Please give me a call. I am SFR designated and would love to provide you with more information and help you with whatever the next step is for your current situation.
Thanks for reading,
Danielle
Direct: 360.483.6490
Email: dgroeneweg@muljatgroupnorth.com
Disclaimer:
Danielle Groeneweg is not to be held liable for any errors or omissions contained in the provided information. This information is only provided as a tool to assist home owners in determining if they want to pursue a short sale.