Auburn

By definition, a “Short Sale” is a transaction whereby a Seller needs to sell the house at less than what is owed on the mortgage, and the lender agrees on the lesser amount, thus being “short” on what is owed to the lender. The reason this situation has come about in Auburn, WA is because the house was more than likely bought or refinanced during the “hot market” of mid-2005 through 2006 and early 2007. Lenders at that time were willing and eager to lend money in an appreciating market, with no awareness nor concern about when the top of the market would be reached. Unsuspecting buyers were eager to buy, out of worry that at the rate home prices were escalating in Auburn, WA and nationwide, they would soon be unable to afford a home at all! Sellers were eager to entertain the highest prices they could, and real estate agents encouraged multiple offers and a bidding war. Appraisers were willing to appraise the houses for a high value, and lenders were willing to lend on the inflated house prices. At that time in Auburn, WA and nationwide, there were loan products available that were previously never available before, some good loans that helped people get into homes, and some bad loans. There also was fraud involved in some cases with the more dishonest, sophisticated, and greedy lenders, appraisers, etc. although not with the normal everyday homeowner and buyer.

Posted on Tuesday, January 20th, 2009 at 5:08 pm and is filed under Questions and Answers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.