Stop Foreclosure Tacoma Washington and Increase Peace of Mind
Foreclosure is a horrifying experience for anyone to have to go through following the loss of income, a divorce or some other finance-altering life event. Foreclosure proceedings occur when the homeowner is unable to pay his or her mortgage for several months, thereby defaulting on the lending agreement. The economic downturn of 2008 had much to do with the increased number of foreclosures over the following years continuing until now. However, the experts at Washington Short Sale Team can help stop foreclosure Tacoma Washington and in the surrounding area.
One way to stop foreclosure is to proceed with a short sale. A short sale can be beneficial for both the borrower and the lender because it avoids the negativity associated with a foreclosure. Lenders do not like to end up with a distressed property, and they typically have trouble selling foreclosed homes. In addition, the homeowner does not want to have a foreclosure on his or her record because it can destroy a credit score and limit the type and amount of loans to be taken out for up to seven years in the future.
A short sale allows the homeowner to sell the house on his or her own terms. The lender agrees to let the house sell for less than what is still owed on the mortgage and forgives the deficiency. Of course, the homeowner will not make any money off the sale. However, the individual will not have any mortgage debt and will not have a black mark on a credit report.
Another option is for the homeowner to voluntarily pursue a deed in lieu of foreclosure with the lender. Sometimes, this is seen as a less desirable option, particularly by the lender, because the lending agent will then have to find their own buyer for the home. With a deed in lieu, the homeowner signs over the deed of the home to the lender, and the lender agrees to cancel the debt, known as the deficiency balance. This will also not leave a black mark on the individual’s credit report. However, depending on the legalities, he or she may be required to pay taxes on the deficiency balance forgiveness because it may be seen as income.
Not every real estate agent has the knowledge and experience necessary to work with homeowners who are in these distressed circumstances. Those who want to stop foreclosure Tacoma Washington should check with the professionals at Washington Short Sale Team who can discuss the intricacies of each of the options. They can be the mediators between the homeowner and the lender and can file the appropriate paperwork, list the home for sale and generally provide peace of mind for the homeowner.