If you are in the Snohomish County area and looking to buy a home at a discount, then a short sale may be appealing. A Short sale is a safer option than a foreclosure for both the seller and lender. Many times a short-sale property is in better condition than a fixer-upper. With all of these positives, it is still important to note that a short sale is more complicated than a typical home sale. You want to know what you are getting into before you purchase a short sale, so read carefully about the ins and outs below.
What is a Short Sale?
A short sale happens when a homeowner is in financial need and sells their home for less than they owe on their mortgage. The mortgage lender gets all of the proceeds of a short sale and they will forgive the difference or the original borrower will have to pay the difference over time. This isn’t ideal for either party, but can be a much better arrangement than a foreclosure. A buyer can hey a good deal on a home from a short sale, but be aware because in some cases these are not always a good investment.
When Does A Home Go Into Short Sale?
A home goes into a short sale when an owner can no longer afford to keep up with their mortgage. This is done instead of waiting for the bank to foreclose on the home. Homeowners are the ones to initiate the short sale process. This is done by applying to the lender. Lenders consider a few things before approving a short sale. The home will need to be worth less than what the homeowner owes and they will need to prove financial hardship.
What Type Of Market Do Short Sales Occur In?
Typically short sales and foreclosures are common during a market crash. This is when a buyer will likely make a profitable trade. Sellers will usually take whatever they can get in this scenario.
What Are The Benefits Of A Short Sale?
A short sale can benefit both buyers and sellers. Buyers have great investment opportunities and sellers avoid foreclosure. Buyers can potentially get a discounted price in a less competitive market. Sellers avoid foreclosure and experience debt absorption or potentially receive debt forgiveness. Lastly, sellers cab reenter the market and obtain a mortgage in the right circumstances.
Short Sales In Snohomish County
Although short sales may not be as common as they were in 2008, you can find them in most real estate markets. There are short-sale listings currently available in Snohomish County. If you are looking for this specific type of sale, work with an experienced Snohomish County real estate agent.
Whether you are interested in buying or selling residential or commercial real estate, contact us! We are available to use our expertise to walk you through your real estate process in Snohomish County.