What Is A Short Sale?
A Short Sale is the sale of real property that produces less than the necessary proceeds to pay off the mortgage against the property.
Once a Short Sale is approved, banks forgive the negative balance, as provided for by the Mortgage Debt Relief Act of 2007 and report the mortgage as a settled debt. Washington State is a single action State which allows banks to either foreclose, or seek a deficiency judgment. They can not do both. Different rules apply to subordinate loans (second mortgages). Contact us for details.
FHA PFS (Pre-Foreclosure Sale) program is a FHA (Federal Housing Administration) Short Sale program specifically designed to assist homeowners with FHA mortgages avoid foreclosure.
We have successfully negotiated Washington State Short Sales consistently for 10 years. Our firm charges ZERO upfront fees.
The short sale process requires experience, patience, tenacity and knowledge. You need a strong Short Sale negotiator working for you who understands a banks motivation is the bottom line, but people make it all happen. Having the right person/company in your corner will insure your success.
We are not a third party negotiating firm. We have an agency duty to present all offers, represent parties to contracts, and must treat all parties fair, unlike third party firms who simply “negotiate” for approval. Disclosures must also be made under the M.A.R.S. Rules.
FHA Pre-Foreclosure Sale Program
The Pre-foreclosure Sale (PFS) Program allows the Mortgagor in default to sell his/her home and use the net sale proceeds to satisfy the mortgage debt even though these proceeds are less than the amount owed.
The mortgagor, seller must be willing to make a commitment to actively market their property for a period of at least four (4) months.
1. For the first 30 days of marketing, the bank may only approve offers that will result in a minimum net sale proceeds of 88% of the “as-is” appraised Fair Market Value (FMV).
2. During the next 30 days of marketing, the bank may only approve offers that will result in minimum net sale proceeds of 86% of the “as-is” appraised FMV.
3. For the duration of the marketing period (60 days), mortgagees may only approve offers that will result in minimum net sale proceeds of 84% of the “as-is” appraised FMV.
Contact us immediately if you are concerned about a looming foreclosure. A Short Sale may be the solution.