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Short Sale Basics - First in a Series

By
Real Estate Sales Representative with Capstone Washington Real Estate, LLC

Have you been hearing the term "short sale" lately but aren't quite sure what it means? Or how it could pertain to you? I'm beginning a short series of blogs explaining the basics of short sales and what make them unique real estate transactions.

First, let me explain what the term actually means. A short sale is simply selling a house for less than the amount owed on the mortgage. There are many reasons why you might be in a position where this becomes a necessity. Perhaps you've had a job loss or other reduction in income, perhaps an illness has affected your family, perhaps your company has transferred your job forcing you to move. Whatever the reason is, finding a reputable agent to help you through a short sale will make the tough situation a little easier. They can help you avoid foreclosure and, in some cases, help you get your loan modified so you can actually stay in your home at a payment you can afford.

Wondering why you can't just sit back and let the bank foreclose on your home? Well, the truth is, you can! The problem with doing that is that it will completely destroy your credit rating for years to come and make it virtually impossible for you to buy another home in the future. A short sale will, unfortunately, also negatively affect your credit score. However it is much less severe and most people are able to purchase another home within three to five years, sometimes even sooner!

In Washington State a new law has gone into effect which differentiates between a typical short sale and a "Distressed Home." Under this law the following conditions will qualify you as a Distressed Homeowner: you live in the home as your primary residence and a) you are already at least 30 days delinquent on your mortgage payment, or b) ) you believe you will become delinquent within the next four months, or c) you are significantly delinquent on your property tax payments. If this is the case you will sign a "Distressed Homeseller" contract as part of your regular listing agreement with your Realtor.

The next blog in this series will cover advertising short sales. If you have questions in the meantime, please don't hesitate to call our team at 360-609-6775. We are here to help!

Lesson 1: http://activerain.com/blogsview/765054/Short-Sale-Basics-First-in-a-Series

Lesson 2: http://activerain.com/blogsview/774079/Short-Sale-Basics-Second-in-a-Series

Lesson 3: http://activerain.com/blogsview/788057/Short-Sale-Basics-Third-in-a-Series

Lesson 4: http://activerain.com/blogsview/796213/Short-Sale-Basics-Fourth-in-a-Series

Lesson 5: http://activerain.com/blogsview/827035/Short-Sale-Basics-Fifth-and-Final-in-a-Series

 

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The S&B Real Estate Team assists people in buying and selling real estate throughout Southwest Washington. We are proud members of Premiere Property Group, LLC in downtown Vancouver. Our local expertise covers: Vancouver, Battle Ground, Camas, Washougal, Brush Prairie, Hockinson, Ridgefield, Woodland and La Center. If you or someone you know is considering living or investing in Clark County, please contact us. Steve Borwieck can be reached at 360-241-7305. Or drop us a note on the “Contact Us” page at www.ppgwashington.com. We are here to help!

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