Understanding A Bothell Short Sale

If you are currently facing a foreclosure on your property a Bothell short sale is a possible alternative. A short sale is the act of a lender approving a property sale for an amount that is less than what is owed on the mortgage. The reason why it is called a short sale is the lender is going to end up "short" on the deal.

The lender will also have to pay for closing costs and the commissions due to the real estate agent.

Qualifying for a short sale

In most cases you need to be in default on your mortgage, which means that you have not paid your loan payment for three months. Quite often there will also be a foreclosure case that the lender has filed.

If you are currently facing a foreclosure you can talk to your Bothell real estate agent about your options. The procedures and requirements for a short sale are constantly changing and your agent will be up to date on the latest qualifications.

Short sale and your credit rating

A foreclosure will have a dramatic effect on your credit rating and may stay on your credit file for seven years. A short sale will still affect your credit, but not nearly as much of as a foreclosure will.

Buying a short sale home

A Bothell short sale can translate into a good deal for a buyer. One thing to keep in mind, however, is that the house will be sold as is and no repairs will be made to it before it is sold. While some of these properties are in good condition, many are in a state of disrepair and you will have to cover the costs of fixing up the home yourself once it is yours. This means that some number crunching needs to be done before purchasing a Bothell short sale. Sometimes a short sale home that is placed on the market will get multiple offers, have your finances in order, I just had had one client involved in a multiple offer situation and they had to provide information on proof of funds before the deal was signed.

Processing times

It usually takes longer to process a Bothell short sale than a traditional home sale since there is more paperwork involved and it needs to go through the bank for approval. It will usually take between 30 and 60 days to find out if the deal will go through.

If you are interested in more information about a Bothell short sale please give me a call. There are a lot of factors to consider with a short sale and I'd enjoy the opportunity to go into them in further detail with you anytime.

For more information contact Adrian Willanger 206 909-7536.