What Is a Short Sale?
Although they may have heard the term before, homeowners often contact real estate professionals or attorneys with the question, What is a short sale? In the most basic terms, it is the sale of a property that does not yield enough funds to cover the total debts against it. It is often considered as an alternative to foreclosure when the homeowner cannot make regular monthly payments and both the borrower and lender wish to avoid the time and money associated with a foreclosure suit. Because the lender agrees to the lower amount, the sale is considered satisfaction of the loan rather than a default. In 2013, over 300,000 homes in the United States were sold through this process rather than at foreclosure auction, allowing hundreds of thousands of homeowners to rebuild their lives without the stigma or lingering debts associated with foreclosure. For more information on Tacoma Wa Short Sale, contact Washington Short Sale Team at (206) 852-7026.
How Can it Help Homeowners?
Since it is a real estate transaction, not a legal proceeding, the process empowers homeowners to work closely with their lender to find a mutually agreeable solution to foreclosure. In a financial crisis, homeowners are often frustrated by the lack of options available to them and upset about the prospect of losing their home. Although they may want to save their home, it may not be financially feasible. The alternative is working with someone who can help guide them get through the process as efficiently as possible. An experienced real estate professional can offer a welcome recourse to a potentially painful, drawn-out legal process.
Incentives for Homeowners to Short Sale Their Homes
Many homeowners are under water with the value of their homes. Many are asking how they can sell their homes when the market has devalued their homes so badly. There are options like the cash short sale incentives that many banks are offering. The incentives programs from the banks will persuade the homeowner or borrower to sell their home as a short sale. Banks are also willing to pay the homeowner a cash amount to list their homes as a short sale property that is available. Homeowners could also benefit from the short sales in Seattle because banks are willing to forgive many deficiency balances that are owed when the sale takes place.
The bank and the borrower will benefit if the borrower short sales a home that is not worth what they now owe on the home. The financial institute or bank will end up with more money at the end of the short sale in Seattle closing then if they had gone through with a foreclosure on the homeowner. Homeowners themselves can also end up with financial benefits at the end of the closing. For more information on Tacoma Wa Short Sale, contact Washington Short Sale Team at (206) 852-7026.
