Some Sequim homes are in foreclosure or need to be sold for less than the current mortgage balance (short sale). Fortunately, Sequim and Port Angeles have far fewer homes in distress than most of the country. There is some confusion among homeowners in financial distress and even among real estate agents about what happens and how to work through the process.
If you’ve read my articles on this blog about the foreclosure process and short sales, you may be familiar with the way things work. You’ll find a series of articles on this real estate blog on foreclosures, the foreclosure process, costs and fees in a foreclosure, the short sale process, and getting a short sale through.
I’m told by mortgage bankers and insiders working inside the loss mitigation departments of mortgage companies that a short sale will not even be considered by a bank until a loan is in default at least two months. Of course, that’s not real sensible on the part of the banks, but that’s the way it is.
I have a listing that will be a short sale, and to sell it the bank will end up taking less than the current mortgage balance. If they do not agree, it will simply go to foreclosure and they will end up taking even less. They know this, and this is why short sales are being accepted.
Buying a house in foreclosure or trying to structure a short sale requires knowledge about the process. Frankly, it is much harder than handling a regular listing and a regular transaction. I recommend reading the series of articles in the above link before making decisions.
Last Updated on May 12, 2009 by Chuck Marunde
