King County Home Solutions

Short Sales are the most common and viable way to avoid foreclosure 

A Short Sale occurs when you sell your house for less money than you owe on it. The lender accepts a “short payoff” in order for the sale to close, hence the name short sale. For homeowners facing foreclosure or facing a financial setback, a short sale reduces the damage to their credit that a foreclosure has, and can potentially stay in the house for months longer without a payment.

For your mortgage company a short sale is an opportunity to reduce their losses on a nonperforming loan. It is well understood that banks lose less money when they accept a short sale versus taking the property back at a foreclosure sale. To a bank a house represents significant liabilities and ongoing financial losses until it is sold to another party. The certainty of accepting a short sale is appealing considering the alternatives.

The most common question I am asked is “how much will a short sale cost?”. Short sales by definition do not cost the borrower anything. All of the costs related to selling the house are taken from the proceeds of the sale. That includes commissions, closing costs, liens, and closing costs paid on behalf of the buyer.  Occasionally some fees such as a septic inspection which are required prior to closing will be covered by the short selling borrower. The challenge that short sales present is convincing the lender that accepting a short sale is going to be better for them than taking the property back at a foreclosure auction. This is where our experience with negotiating these transactions pays off. After years of negotiating with lenders we have developed a keen sense for their negotiating strategies and have the skill and resources to help them come to the right conclusion, approving your sale.

When is the best time to short sale? As soon as you realize you are not going to be able to make your house payments, before you spend your savings, before you raid your retirement, and definitely before you start paying your bills using credit cards. The key to financial recovery is to take action before taking on new debt or pillaging your assets. Our goal is for you to take steps for long term recovery from the financial distress you are currently in.

When considering your options, a short sale can put many homeowners financially ahead over the long run. If you owe more than your house can net in a sale, a short sale may be a great option for you. Why? Consider this: 

1. If you are behind on payments you may not have to make them up with a short sale. With a loan modification you will.
2. Even though you owe thousands more then the property can sell for, you pay nothing to complete the sale.
3. You have several months with no house payment. A short sale takes months to complete, often longer than the foreclosure action since they almost always require the lender to hold off on the foreclosure while the short sale is being negotiated. You have time to save, pay bills and cover moving expenses.
4. Chances are you can rent a very similar home to the one you live in for 1-2 years for 1/2 to 2/3rds of your current mortgage payment, save the difference and have money to put down on a house just as the market hits bottom.
5. Short sales are less damaging to your credit which, in most cases, can be repaired in 1 to 2 years.
6. You immediately reduce your monthly outflow and significantly reduce it for the long run by renting a similar property.
7. While you rent, you don’t have to worry about making house repairs. No more lost paychecks at Home Depot.

The best part is the pressure is off of you starting immediately and the savings are significant, potentially putting you ahead by 6 figures over a 5 year period. How do the numbers stack up for you?

Click here for the Why Short Sale Calculator to see how much you could save.

 I am your Certified Short Sale Specialist™ in King County. Short Sales are challenging transactions and should not be engaged in by agents who have had little experience in this specialty, even if they have had decades in the business, or taken a couple of classes. We engage a team of negotiators with extensive experience in short sale negotiations. Our team includes attorneys, bankers, negotiators, and loss mitigation specialists who negotiate Washington short sales. I have over 23 years experience in selling King County, Pierce County and Snohomish County Properties.