If you are struggling with financial difficulties and a potential foreclosure looms over the horizon, you need to arm yourself with some tools that will stop foreclosure in Washington. One of the best tools used to stop foreclosure proceedings is a short sale.
A Closer Look at Short Sales
A short sale is the process of selling your home for less than what you owe. Upon completion of the short sale, your mortgage lender will satisfy the mortgage debt that you owe. However, your lender must approve the short sale and you must meet a few specific requirements to qualify:
• You must owe more on your home than it is worth.
• You must have faced some type of hardship, which includes unemployment, divorce, medical emergencies or a job transfer.
• You must be in default on your mortgage and facing foreclosure.
Although a short sale prevents your home from going into foreclosure, you will still lose the property in both instances. However, a short sale has several important benefits than just letting your home go into foreclosure. Here are a few of those benefits:
• Your credit score remains intact, whereas a foreclosure devastates your credit score.
• You avoid a default judgment by the courts, which often leads to deeper debt.
• Instead of the bank forcing you out of your home, the bank works with you to find a buyer for your home.
In the state of Washington, there is very little downside to pursuing a short sale if the bank is ready to foreclose on your home. In order to take full advantage of what a short sale can offer you, you should speak to a short sale specialist. A specialist has the experience you need in dealing with not just banks but loan servicing companies and credit unions. A specialist will also help you find programs that offer alternatives to foreclosure.