Cowlitz Home Owners - What You Should Know About Short Sales
Short Sale - have you heard of this term before? I know here in Cowlitz County we don't have that big of a problem (yet) pertaining short sales but you may heard of it from the media since it seem that they make it a big deal daily event. I will pin point some of the most important information you need to know before you enter in to the selling or buying short sale venture.
What is a short sale? A short sale is a real estate transaction in which a lender or lenders are willing to take a loss and allows the home to be sold for less the amount a home owner owed on the mortgage. An example would be; if home owner have a loan on his home for $300,000 but in today's market buyers are only willing to pay $250,000 base on recently homes sales in the same neighborhood. In this case the home owner (seller) have to ask the lender if he is willing to take less than what is owned on the home, if the lender agrees than is a short sale.
Why would a lender agree to a short sale if they are losing money? Well, taking a loss on a short sale sometimes is way less expensive than foreclosing on a home. The foreclosing process can get pretty expensive with court cost and attorney fees as well as time consuming, some home owners can keep lenders from foreclosing on their homes for months. This is why some times lenders feel it is better to accept a short sale than foreclose on a property.
What is the process of a short sale? A short sale process can get pretty complicated and time consuming, especially if you have more than one lien holder (first mortgage, second mortgage) and if a mortgage insurance is involved in the matter, the sale have to be approve by all institutions. All services will review the home owner's financial situation to determine the ability or inability to repay the debt, they will also determine the value of property and weigh that against amount owed and compare what will make them more money a foreclosure or a short sale.
How will I know if I qualify for a short sale in here in Cowlitz County? Not every home owner qualifies for a short sale, you have to fall in to a lenders guide lines to be consider and every lender have their own formula or guide lines to use when considering a short sale. Qualifying for a short sale is like qualifying for a loan but in reverse, you have to provide the same kind of information to prove that you are unable to make your monthly payments.
Necesita Ayuda en Español? Informacion en su idioma sobre Casas de venta en Longview WA y Vancouver WA!