Lynnwood WA short sales are an effective solution for homeowners whose mortgage balance exceeds the current market value of their property. Real estate prices have exhibited several years of price fluctuations, leaving some homeowners concerned about their excessive loan balances. When real estate prices were higher, some homeowners took on a second mortgage based on home equity existing at the time. Other homeowners simply watched as the value of their home sank, and the mortgage terms remained fixed.
Lenders now realize that Lynnwood short sales are less costly than foreclosure proceedings and offer a practical alternative. After the lender agrees to reduce the loan balance, the homeowner is able to place the property for sale at a lower price. The homeowner is more likely to avoid foreclosure and is able to sell the house for a realistic amount. The bank is able to recover the reduced mortgage amount and minimize its overall cost. A short sale agreement is an additional contract between the bank and the homeowner. The Washington Short Sale Team specializes in crafting these essential agreements for Lynnwood short sales.
If there is a second mortgage holder, that party must also agree to a short sale. An agreement between the homeowner and two lenders requires more effort but is required to accommodate the second mortgage. Lenders who hold a second mortgage are in a relatively weak position due to their secondary lien. In the event of a foreclosure by either lender, the holder of the first mortgage receives first priority on funding. Secondary mortgage holders are therefore more willing to reach practical agreements on how to structure short sales and avoid foreclosures. The Washington Short Sale Team has the experience to bring together all involved parties in Lynnwood short sales.
Arranging a short sale agreement can sometimes require up to several months. If the possibility of foreclosure is anywhere on the horizon, a homeowner should immediately seek short sale assistance. The overall objective is to be able to place a realistic sales price on the property. Once the home is priced accordingly, the market is more likely to produce a buyer and settle the reduced mortgage balance. For further information about Lynnwood WA short sales, contact the experienced professionals at Washington Short Sale Team. Call the phone number listed, or enter your information in the contact form.