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 Washington and are facing any of the situations above and you think a short sale might be your best option, then read on.
A: 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 it 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.
A: 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.
A Breach Letter (letter of demand) is generally received once the loan is 30 days in arrears and basically states that you are in breach of the repayment contract.
Next you receive a Notice of Default which 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 Boise Business Review (Newspaper subject to change)
c. Last Publication more than 30 days prior to sale date.
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.
a. Buyer at auction takes possession 10 days following the sale.
b. Home owner in default and has 10 days to vacate 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.
Quit Claim Deed: A deed of conveyance that releases any title, interest, or claim, which the grantor may have in the premises.
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.
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.
A: Spokane's Best is 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.
Spokane's Best is comprised of a partnership of agents led by Leigh Wilson 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.
A: Short sales are usually "Priced to Sell" making them an option for buyers on limited incomes or real estate investors. We know 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.
Contact a team member for more information.
Get started today. Click here to request our free Spokane Short Sale and Foreclosure Packet. Our consultations are always confidential and no-obligation.
Thanks for thinking of Spokane's Best. We really can help.