How a Bellevue Short Sale can Stop Foreclosure
A Bellevue short sale is when a property is sold for less than the balance of the loan or mortgage on the property. The remainder owed on the loan, or “deficiency”, is then cancelled or “forgiven” by the lender. The amount that was outstanding on the loan is then reported on Form 1099-C, Cancellation of Debt. In a Washington short sale, both the property owner and the lien holder want the same result, to prevent foreclosure. Contact Washington Short Sale Team (206) 852-7026 so a trained lawyer can explain all of the details of how a short sale works.
Foreclosure on your credit report can wreak havoc on your life for a long time to come. Government funds are available as an incentive to choose a short sale rather than a bank foreclosure.
Stop Foreclosure in Washington State
Washington State law requires lenders to give you an opportunity to discuss available options with them, before sending you a notice of default. Once the notice of default is sent, lien holders are required to wait a minimum of 4 months before listing the property at auction.
If a bank forecloses on a property, they have the responsibility to maintain the property and have adequate insurance coverage on the property until it sells. Any court costs or attorney fees incurred during foreclosure are the bank’s responsibility. If the bank has no other alternative than to seize the property by foreclosure, they will be required to issue a 1099-A, Acquisition or Abandonment of Secured Property.
Bankruptcy is one of those options that homeowners hope they never need, but it is an option that can eliminate foreclosure. Chapter 7 bankruptcy is a temporary solution to afford you the opportunity to catch up on your payments or get a modification on your loan agreement. Chapter 13 is a permanent solution to foreclosure by allowing you 5 years to catch up on your loan. With this option, you are able to consolidate all of your debt into a repayment plan.
Consult a Washington State “stop foreclosure” attorney as soon as you think you might miss too many payments. Learning the laws of Washington State will empower you to make an informed decision as to whether a Washington State or a Bellevue short sale is in your best interest. Contact Washington Short Sale Team at (206) 852-7026 and speak with a specialist about our short sale process.