How the Short Sale Process Works in Washington State
Help me I need to short sale my home! The phrase ‘short sale’ seems to get tossed around quite a bit, not only in Washington State, but across the entire country. A short How the Short Sale Process Works in Washington State sale is the sale of a particular home for a lesser amount than what the homeowner owes on the actual mortgage. And, the financial lender agrees to a short-term payoff in return for releasing the lien on the property.
When I bought my home, like most people I borrowed the money from the bank and signed a deed of trust. The deed of trust is basically a legal contract that pledges my home in order to secure the debt. So, if I don’t (or can’t) repay the debt the lender has the right to sell my home without my consent and to then apply the proceeds from the sale towards the debt. So, a deed of trust essentially creates a ‘lien’, which is a legal right of someone else besides the homeowner to sell the home to repay the debt.
Several people refer to ‘short sale’ to describe virtually any sale where the price is less than the original amount owed. But, that’s not really accurate – at least not until the financial lender agrees to short sale my Washington home. Instead, if I can get an offer from someone to buy my home for less than what I actually owe, I maintain the option of repaying the full amount of the mortgage; for example, paying the difference between what I owe and the sale proceeds. If I can repay the debt in full, the lien has to be released and I won’t be forced to short sale my home.
However, some people simply don’t want to pay any money to sell their home; or in my case, short sale my home. Based on that reason, if I get an offer from a buyer to purchase my home for a lesser amount than what I owe, I can approach the lender and request that they release the lien even though my loan won’t be entirely paid in full. Still, the bank isn’t under any obligation to go along with my request. On the other hand, they may agree, but only under the condition that I continue to make payments each month on the balance following the sale. Then I won’t have to short sale my Washington home after all. In the end, most financial lenders are completely willing to forgive the subsequent unpaid balance.