Short Sales: an Alternative to Foreclosures

What is a SHORT SALE?

A Short Sale is simply the sale of your home for less than what you owe, with lender approval.

In our current market it is also referred to as a pre-foreclosure sale, but that wasn't always the case. Short Sales have been around forever but were only used in special circumstances that didn't always involve a delinquent mortgage.

"A pre-foreclosure sale involves the sale of the property by the borrower to a third party for less than the amount owed to satisfy the delinquent mortgage, as agreed to by the lender, investor, and mortgage insurer".

Most lenders are willing to forgive a portion of the debt in order to avoid the foreclosure process. If the lender does agree to a Short Sale - the cost of the sale is paid for by the lender - property taxes, real estate commission, excise tax, seller's closing cost, HOA liens, and any other liens that affects title. Most lenders will pay all of some of the buyer's closing cost as well.

The seller receives no proceeds from the sale, however the debt is forgiven and the seller is released of the obligation on the loan.

The current real estate market in Vancouver, and most of Clark County is still on a downward trend. We have a record number of homes for sale - a true Buyer's Market. Homeowners are starting to reduce the list price even more to get their homes sold and many are simply taking them off the market.

Some homeowners purchased at the peak of the market and are now faced with the fact that they owe more on their home than it is worth in the current market. Many homeowners are in trouble because of adjustable rate mortgages - boosting their payments beyond the budget. Many are in trouble because of lost jobs.

The fact is that there are many many reasons why some homeowners need to sell their homes now, even if it isn't the best market. Sometimes a Short Sale is the best solution.

Short Sale Updates

Mortgage Debt Relief Act

Distressed Property Scams

Credit Concerns - Foreclosure or Short Sale?

Loan Modifications ~ Workout Solutions

Call me for a free consultation!

I will gladly review the entire Short Sale process with you, no obligation, no fees!

Sandy Michaels, Realtor

360-601-3490

Information is provided as reference only and is not intended as legal or tax advice.

SHORT SALES: an Alternative to FORECLOSURES

CLARK COUNTY, WA. REAL ESTATE MARKET & TRENDS

FORECLOSURES, PRE-FORECLOSURES

DISTRESSED PROPERTIES

What is a SHORT SALE?