Your Short Sale and Foreclosure Questions Answered
Before you read further, ask yourself three questions:
1. Are you facing a financial hardship that you know will decrease your income?
2. Are you getting behind on your mortgage and aren't sure if you can catch up?
3. Or do you just need to sell quickly but your home is worth less now than when you bought it?
If you live in Spokane or the Spokane Valley area and are facing any of the situations above and you think a short sale might be your best option, then read on. If you're still not sure and just want more info, then click here to request a free copy of "9 Alternatives When Facing Foreclosure."
Click on any of the Frequently Asked Questions below to jump to the answer.
We haven't been able to make our house payment for a while. Is foreclosure our only option?
Absolutely not. The truth is, the bank really doesn't want your home back! You may not have to lose it. Know your options before you make a decision. Let us review each of these options with you.
Option #1 – Work with your current lender
a. Forbearance - A situation where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan.
b. Loan Modification - With a loan "modification" you take the mortgage you now have and change the interest rate and payment requirements.
Option #2 – Work with a new lender
b. Junior Mortgage Line of Credit* (HELOC)
*Use caution when acquiring a new loan. Please talk to us about when this may be appropriate and not perpetuate a negative situation.
Option #3 – Bankruptcy
Bankruptcy should be a last option and a professional opinion should be obtained before moving forward in this decision.
Option #4 – List the home to sell
a. Pay off all loans attached to the home
b. List your property as a short sale. This occurs when a lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed
Option #5 – Give up and let it go
a. Deed in lieu of foreclosure - A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender.
b. Auction overbid* (Be cautious of investors approaching you to convince you to let it go to auction with potential false promises of an auction overbid.)
*Be aware that auction collusion is not uncommon between buyers. Talk to us about the consequences this can present for you as a seller.
I am interested in learning more about Spokane short sales and how to purchase these homes. What can you tell me?
Short sales are usually listed to sell at very low prices, making them an excellent option for real estate investors. We know Spokane sellers are eager to expose their short sales to serious buyers, and we know investors and buyers are anxious to have access to search tools that will allow them to browse these listings.
To that end, we have created a customized short sale search that will allow you--the buyer or investor--to browse listings exclusively designated as "short sales."
We are facing a potential foreclosure in the state of Washington. What is the foreclosure process? There are certain time requirements that must be met while processing a home foreclosure. It is important that the homeowner know these in order to stand the best chance of avoiding a foreclosure on their home.
- Breach Letter (letter of demand): Generally received once the loan is 30 days in arrears and basically states that you are in breach of the repayment contract.
- Notice of Default. Is either:
a. Recorded (It is now available for public viewing).
b. Mailed or Delivered
- Notice of Trustee Sale Posted
a. Not less than 120 days before auction
b. Published 4 times in local Business Review (Newspaper subject to change)
c. Last Publication more than 30 days prior to sale date.
- Reinstatement Period
a. Expires 115 days after Notice of Default is recorded (homeowner must pay back payments, fees, and trustee charges to reinstate).
b. Days 115-120 lender can call the note rather than accept owner reinstatement.
- Buyer Entitlement
a. Buyer at auction takes possession 10 days following the sale.
b. Home owner in default and has 10 days to vacate premises.
I have only a general knowledge of terms like quit claim deed, short sale and REO property. Can you give me more definitive explanations? HUD Repo: Simply put, the property had an FHA insured loan on it that went into foreclosure for lack of payment. (HUD stands for Housing and Urban Development.) Search HUD listings here.
REO Property: REO stands for "Real Estate Owned." This is real estate that had a bank loan on it that went into foreclosure and the bank has reacquired the property for nonpayment.
Quit Claim Deed: A deed of conveyance that releases any title, interest, or claim, which the grantor may have in the premises.
Short Sale: A short sale is a real estate transaction where the homeowner owes their lender more than what their property is worth and they need to sell. In a short sale, the lender approves and accepts less than what they are owed as full payoff. In Idaho, like all states, the lender has to approve the short sale before it can be listed and marketed as such.
As part of our comprehensive Seller Foreclosure & Short Sale Packet, we include a glossary of those terms you will encounter before or during the process.
You say you are Spokane short sale experts. How do you specialize in short sales and what can you do for me?
Spokane's Best specializes in short sales in two ways:
Firstly, we are experienced in the process of listing a home as a short sale and successfully bringing the transaction through escrow. In fact, because every lender, seller and short sale is different and the process can be lengthy and difficult, it is not uncommon to receive referrals from other real estate agents in the valley.
Secondly, we are experts in helping real estate investors find investment opportunities -- short sales or otherwise.
Spokane's Best is comprised of a partnership of agents whose main objective is to get you the end result that you want with your home, even if this means that we don’t sell your home.
One of the major reasons that we went into real estate was to help people. That has not changed over the years. Our belief is that if we help people through both good and troubled times, the effect will be one that will result in friends, clients and referrals for life.
So, that said, what is it that we do for clients looking to short sale their Spokane home?
Get started today. Click here to request our free Short Sale and Foreclosure Packet. Our consultations are always confidential and no-obligation.
- Have a one-on-one, no-obligation consultation to review your situation.
- Give you an honest, upfront opinion of your situation.
- Prepare the necessary paperwork for us to communicate on your behalf with your lender(s).
- Keep in constant communication with you regarding our progress with the lender(s).
- Provide anytime consultation and answers to questions (we don’t want you losing sleep because you have a concern that we can help with).
- Help you assemble the financial information for the lender in preparation for an outcome that best benefits you.
- List and market your home at a competitive price if that is what we all agree is the best solution.
- Help negotiate a modification of your loan if that is the best solution.
- Negotiate all contracts between lender, buyer and seller.
- Help to find new housing if necessary.
- Ultimately we want to keep a foreclosure off your credit…this is crucial to your future. A short sale or late payments are much more quickly forgiven than a foreclosure that will remain in your shadow for as much as 10 years.