The Steps of a Short Sale in Washington State
Step 1: Free Phone Consultation
The first of the four steps to a short sale begins with the seller contacting an agency that specializes in short sales. The seller then provides the short sales agency with all pertinent information, including how many loans the seller has, if any of those loans are in default, if the home is currently up for sale, if the seller has insurance (PMI), what type of property it is, if a trustee sale date has been set, and if there are other holds on the property.
Step 2: Paperwork
The second of the steps to a short sale is to gather, file and submit the necessary paperwork. During these steps to a short sale, the seller is also often able to speak with an attorney free of charge. This allows the seller to complete the steps to a short sale with confidence. The seller may also be eligible for a variety of federally subsidized programs aimed at helping home owners stay out of foreclosure.
Step 3: Negotiation
When a buyer is found and an offer is made, the short sales agency sends the offer to the lien holder for review. The negotiation steps to a short sale generally take 60-90 days. Once the lender has agreed to the terms, the agreement is shown to the seller for final review. As with the second of the steps to a short sale, the short sales agency usually provides an attorney consultation with the seller free of charge.
Step 4: Closing
The final of the steps to a short sale is the Closing, which happens when the buyer has waived on any contingencies and the seller has read and approved of the short sale approval letter. The short sales agency should oversee the whole process, including filing for extensions if necessary and confirming the buyer has the proper financing. A good short sales agency will lead the seller confidently and efficiently through each of the steps to a short sale, from gathering information to closing.
If you are interested in learning more about the short sale process in Washington State, contact Washington Short Sale Team at (206) 852-7026.