What is a Short Sale? Can I Sell My Washington DC Property using a Short Sale?
A short sale is when a property is sold for less than the balance on the mortgage loan. In other words, the seller of the property owes more than what he or she is selling it for.
The mortgage lender (or bank) also has to agree to take less money that what is owed. Typically the owner needs to prove financial hardship before a lender accepts a real estate short sale. Most lenders have a short sale or hardship packet to fill out.
Even though this is not the ideal situation for the owner, it is a much better option than going into foreclosure because a short sale usually does not hurt the owner’s credit score as much as a foreclosure.
Why Would a Lender Agree to a Short Sale of my Washington DC area property?
If you think about it, why would a lender agree to accept less money than what is owed on the mortgage? This is exactly what happens with short sales.
If the owner decides to stop making payments altogether and lets the property go into foreclosure, it could take several months for a bank or lender to take the property back. And after the lender takes control of the property, they still have to put the house on the market and it could take up to a year and a half before the bank gets any money from the property. Foreclosure is a very expensive process for the lender and it is one of the reasons why banks would rather agree to a short sell than to go through a foreclosure.
If you are considering going through the Short Sale process and want to sell your Washington DC area property contact Swing Real Estate at 202-888-0560 for a fair offer on your property and we’ll help you through the process.