Foreclosure is the worst option possible for homeowners. During foreclosure, the bank takes possession of the home and the residents are evicted. The process is traumatic for homeowners, who have many memories in the home, and it is not ideal for the lender, which may not recuperate the full value of the loan. A short sale, therefore, is often a preferable alternative for everyone.
During a short sale in Washington state, the homeowner and the lender seek a buyer together to offset the debt. Therefore, homes sold by short sale are often reduced in price. The amount is determined by how much the home is worth and how much the homeowner still owes. Because the home is listed at a bargain price during a short sale, it is often sold quickly and with no questions asked.
The advantages of a short sale extend to all parties involved with the process. The lender is able to get the money needed to cover the debt. The buyer is able to purchase a new home at a reduced price. Most importantly, the owner does not have to go through the process of foreclosure, which can leave homeowners bankrupt, exhausted and emotionally spent.
A short sale in Washington state must be completed before the foreclosure process begins. While there are many advantages to selling the home in this manner, it is not a process for every homeowner. All homeowners should assess their financial and legal situation closely before pursuing a short sale. Other alternatives for loan renegotiation may still be available in some cases, allowing homeowners to keep paying their mortgage at a more affordable rate. However, when all other options have been exhausted, a short sale may be the best solution to avoid foreclosure and satisfy the loan.