Short Sale Tips for Washington Home
Tuesday, October 28th, 2008
There may be times because of a person’s career or for a personal reason that the home in which they are living and hoped to for many years needs to be sold. However, with the current economic climate selling a home whether in Washington or any other US city has become more difficult. This is one of the reasons short sales of Washington homes or homes elsewhere are becoming more common. So what is a short sale and how does one qualify for them?
Short sales on homes are where a property can be sold for less than the actual amount that is outstanding on the mortgage and this amount is then cleared fully by the lender. A great number of lenders are willing to allow a short sale on a property rather than carry out foreclosure proceedings. This is because it costs them a lot less because once a property is foreclosed the lender takes responsibility for it and has to arrange its sale.
However when it comes to selling your Washington home using this method you will need to be able to meet certain criteria’s and below we look at what some of these are.
1. Before agreement can be made of a short sale the owner of the property needs to show the lender that they are having financial problems. It is important therefore that as soon as you know you are having financial difficulties you contact the lenders customer service or collection department. When talking or writing to them keep a record of everything even though the lender will be keeping their own.
When it comes to showing them that you are having financial difficulties there is certain documentation that you need to provide them with which shows what assets you have. They will want copies of your pay checks, bank statements, tax returns along with any stocks or bonds you have. Not only can they see what your income is like but will be able find a way to assist you that may mean you don’t need to sell your home at all.
2. Should you complete a short sale on your Washington home then upon completion the lender will require further documentation to back up your request. They will want a copy of the comparative market analysis report carried out by the real estate agent who sold the property for you. Also they will require a copy of the sales agreement as well as details of the amount you made or loss when you sold your Washington home.
Be aware however that sometimes the lender may not be the only person who can agree to a short sale on your home. If you have mortgage insurance then the investor who has provided this may also be required to give their agreement to a short sale on your Washington home.

