When a person is having trouble paying the mortgage in Auburn, WA, they have choices, one of which is to sell the home as a “Short Sale”. This is where the seller, usually with the evidence of a market analysis, realizes that they will be unable to sell the house for the same price that they had paid for, mortgaged or refinanced the home.

Auburn lenders are not naïve, nor unaware of the value of a home, and in a short sale process will insist on a comparative market analysis “CMA”, or broker price opinion “BPO”. The lender may hold out for a higher price than what the agent and owner have decided as the listing price on the Auburn short sale property. When an offer comes in on the short sale, many things happen (or don’t happen). If discussions about the short sale have not already been held between the real estate agent/seller in Auburn, WA, and the lender; the lender will require proof that the seller is in hardship and requesting a short sale. This proof includes a hardship letter that explains why the seller cannot pay the difference due upon sale, including why the seller has or will stop making the monthly mortgage payments on their Auburn short sale property. The lender will want to see a copy of the Auburn, WA, seller’s financial statements and assets. If the seller has savings or assets, the lender may not grant the Auburn short sale. It has recently come about that the Auburn lender is not likely to waive the deficiency, and will reserve the right to come after the seller in the future for the deficiency (what is owed).

None-the-less, in some cases, the seller of the Auburn, WA property will be better off to try to do the short sale, rather than wait for a foreclosure to come about, due to credit scoring reasons. It at least shows an attempt to rectify the short sale situation, rather than just walking away from the home altogether.

Posted on Tuesday, January 20th, 2009 at 5:22 pm and is filed under Short Sale. 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.