Washington State Short Sale

What is a Short Sale in Washington State?

What is a Short Sale in Washington State real estate? It’s probably a term you’ve heard a lot lately. If you’ve been looking for a house to buy, you’ve no doubt noticed the plethora of advertisements proclaiming a short sale. If you’re trying to save your home, this option may have been presented to you. But what is it?

Short sales in Washington state real estate are when the bank handling the mortgage on a property decides to allow the property to be sold for less than the amount owed. While more and more banks are turning to this option lately, don’t assume it’s a given if you’re late on your loan payments. In order to get a bank to agree to a short sale, value of your house must be incapable of meeting the amount of the mortgage. This means your chances of getting an offer on your home for the amount you owe on it are almost non-existent. Next, you must genuinely be unable to make payments on the mortgage and need a way out in order to avoid having a foreclosure on your credit report.


Short Sale Washington State seattle foreclosures

Consider Home Loan Modification First!

If you are thinking of selling your home because of financial difficulties and you anticipate a short sale in Washington State, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification. If you have a hardship affecting your ability to make your mortgage payments or have already behind payments, you may be able to receive a more affordable mortgage payment under the Home Loan Modification Program. The government’s goal for the loan modification is to make your monthly payments 31% of your before tax monthly income.

When a loan modification still is Not enough to relieve your financial problems, a short sale could be your best option if your home is worth less than your mortgages you owe on it or you have a financial hardship, such as a job loss or major medical bills. If you are thinking to sell your home in a Short Sale, you should know about short sale hardship letter, short sale tax implications and short sale credit damage.

Successful Washington State Short Sale Process

So, you need to arrange a short sale on your property. You're behind on payments, the bank is nipping at your heels, and you have an offer on it, but it's not enough to cover the amount you still owe on the house. What do you do? You ask your bank to allow a short sale. But this means the bank won't be fully recouping its investment in your house. You've got to make a compelling case to your bank as to why the short sale is necessary. Here's what to do.

First, you need to submit a short sale package of supporting documents to your lender to prove that financial hardship is the reason you need to do a short sale. Banks will usually look favorably on cases of financial hardship, while they'll most likely deny your request if it looks like you got into your predicament through irresponsibility.

Call your lender and request a Washington State short sale package. Then, be sure to fill out every line of every page of the package. Go over it several times if you need to, in order to be sure you didn't miss anything. Even a tiny mistake or one piece of missing information can delay or even derail your short sale effort, and may even lead you into foreclosure.

Once you've submitted the package, be aware that the loss mitigation departments of most banks and mortgage companies are very slow in their operations. It can often take weeks for them to even look at your package. If your package has any mistakes, it will sit there for even longer, while bank employees look at other packages. It could be a long time before anyone gives your Washington State short sale package a second look. This is why you MUST get everything right the first time you send the package in.

Also be aware that the short sale hardship letter you write must be extremely specific. For example, if you lost your job and are no longer receiving paychecks, you will need to mention in your letter that you aren't receiving checks, or your bank will call you and ask for proof of those lack of checks. Further, be sure you know your bank's submission policy before sending in your package. Some banks require you to call first to let them know you're sending it in....and if you don't call, it's almost certain no one will look at it when it arrives. Find out in advance, too, if your bank will accept generic short sale forms, or if you must use the forms specific to that bank alone. It will make a difference in how quickly your request is processed.

You can put your Washington short sale package together yourself if you do it carefully, but if you request help from a real estate professional, make sure you get one who is experienced in Washington state short sale. One inexperienced agent can totally de-rail your efforts, so look for one with not only experience, but a track record of success, as well. You'll be glad you took the time to do the research when your short sale in Washington state is accepted and your home--and credit rating--is safe from the damage Seattle foreclosure can cause.

Washington State Short Sale Real Estate Agents

Whether you are selling your home in a short sale or buying a short sale in Washington state, you need a right Washington state short sale specialist! Our Washington State Short Sale real estate agents are CDPE (Cretified Distressed Property Expert) and SFR (Short Sales and Foreclosure Resource) certified and have a success rate of 98% on approvals from the banks. Our Washington state short sale specialist will provide necessary paperwork, be responsible for all contact with lenders and banks, and negotiate on behalf of you.
Washington State Short Sale

#1 SHORT SALE TEAM IN WA

"Behind Mortgage Payments?"
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Our Short Sale Realtors Can Help!

Washington State Short Sale Specialist

 

 

 

(206) 235-7237 or (425) 998-6004
www.ShortSaleHomeExpert.com


Short Sale FAQ's

Q. Is the Federal government forgiving the Homeowner’s responsibility of paying 1099 taxes on a short sale deficiency amount?

A. A short sale on a house occurs when the homeowner sells their home for less than the amount owed on the mortgage and the bank or financial institution forgives the rest of the debt. Typically, the lender agrees to accept the sales proceeds for release of the mortgage lien on the home even though the sales price is less than the total outstanding mortgage. This allows the homeowner an opportunity to sell the home to avoid Seattle foreclosure. The debt forgiven is reported to the taxpayer on Form 1099-C and then reported on Form 1040, line 21 unless an exception such as insolvency or the qualified principal residence indebtedness exclusion applies.


Washington Short Sale Scam Alert!

Home sellers should watch out for unethical investors who will try to convince an owner facing foreclosure to (1) sign a quitclaim deed for the property and then (2) lease the property. In such cases, the former owners will still be liable for the mortgage payments, even though they no longer own the house.

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Short Sale in Washington State

RESeattle.com is your best Washington state short sale resource. You can search every available short sale homes in Washington. As of today there are many bank foreclosures and short sale homes for sale in Washington. The number of homes updates daily, so be sure to keep coming back right to the best website for searching Washington State short sale houses and condos for sale.

Contact Us

Keller Williams - WA Short Sale Team
505 - 106th Ave NE Suite 210
Bellevue, Washington 98004
Phone / Text: 206.235.7237
Fax: 425.454.4577
Email: reseattle.com@gmail.com

Washington State Short Sale