Short Sales Explained
Is a short sale or foreclosure your only option? No. The first option you should consider is a loan modification. A loan modification is where your lender modifies the note for either a short term or long term period in order to avoid short selling or foreclosing on the home. Many times the distressed homeowner is in a temporary situation that can be resolved with either a temporary or permanent modification to your mortgage. Some of the modifications include a reduction in the interest rate, reduction in the principal, reducing or eliminating late fees and penalties, lengthening the term of the loan, capping the monthly payment based on a percentage of income and/or a mortgage forbearance program. The lender can use one or a combination to assist the homeowner short term, long term or permanently but in order to qualify for a loan modification the homeowner must be able to show and prove they have or will have sufficient income to continue to make the new payment.
Here's an excellent video that explains the loan modification process.
In the event that a loan modification is not an option or you don't qualify the next step is to consider a short sale. The first step in the short sale process is to under exactly what a short sale is. CDPE (Certified Distressed Property Experts) have put out some very useful videos that easily explain the process and what to expect.
What is a Short Sale?
Short Sale vs. Foreclosure
Many homeowners first thought when facing financial distress is to just let the home go back to the bank and move on. This is not always the best and only option available. It's important to understand the difference and affects of completing a short sale vs. a full foreclosure on your record.
Importance of Hiring a Professional
When you decide to short sale your home it's very important to hire a professional that has the experience and know how to get the job done. An experienced professional REALTOR knows how to start the process, negotiate with your lender, market your home and get everyone to the closing table. The process is drastically different than a traditional sale and if you have the wrong person work what can be a complicated process the stress and workload can accelerate quickly.
Pacific Northwest Realty Group has experienced REALTORS that have successfully closed several short sales with a variety of lenders including Chase, Wells Fargo, Green Tree, Bank of America, GMAC and many more. Call one of our REALTORS for a FREE consultation where we will cover the process from beginning to end and work to procure a buyer as quickly as possible.
Get started by completing the form below. One of our REALTORS will call you to setup an appoitment to determine the fair market value of your home.