Frequently Asked Questions

You Have Options. We Have Solutions.

What if I don’t like the options Puget Property Solutions gives me?
We try to give you multiple options. Ultimately, there is no obligation. We will assess your situation at no charge and provided solutions.

What if I need to sell my property quickly?
We like to have about 30 days to close your sale. However, we can purchase your property with all cash in as little as 72 hours.

What is a Short Sale?
A short sale is the sale of a property for less than what the owner still owes on the mortgage. The lender agrees to accept less than the amount owed rather than taking the property back. They are “shorting” the full balance due. Lenders agree to a short sale because they believe it will net them more money than going forward with a lengthy and costly foreclosure process.

A Short Sale is a very complicated real estate transaction and one that has very important implications and should be handled only by a real estate broker who has substantial experience with the short sale process in Washington State.

Short Sale vs Foreclosure?
In most cases, a short sale makes more sense than foreclosure.
Every homeowner’s situation is different. We always recommend that you speak with a professional who can advise you on the legal and tax implications for your circumstances. Puget Property Solutions offers free attorney consultations as part of our service.

How Do I Know If I Qualify For a Short Sale?
Every situation is unique. The basic criteria for qualifying for a short sale are: You owe more than your house is worth and can’t afford your mortgage payments – You need to sell your home. You have a personal financial hardship that will prevent you from making future payments. (Examples of hardship include loss of job, divorce, death of a spouse, medical emergency or illness.) When calculating if your house is worth less than the amount owed on the loan, you should deduct out what you would pay in real estate commissions, closing costs, and state excise taxes to sell your home. We can help you with those calculations.

How Long Does a Short Sale Take?
The short sale process is complicated and time-consuming. It can take several weeks, or even months, to get a short sale approved. Many lenders have several layers of management, insurers, and investors that will have to be satisfied before a short sale is approved. As a homeowner, it is important to be patient during this long process. It is also critical that you work with a short sale negotiator who is familiar with the various requirements of individual lenders to ensure that the process moves as quickly as possible.

Is There Enough Time To Do a Short Sale Before A Foreclosure?
Maybe, maybe not. Just starting a short sale will not automatically stop a foreclosure. However, many times a lender can be convinced to postpone the foreclosure to let a short sale negotiation take place. Your chances of being a good short sale candidate is part of your free attorney consultation.

Does a Short Sale Always Work?
No. There is no guarantee that this will work. Once you fall behind on your loan, the lender can proceed to foreclosure if they choose to. Lenders prefer not to foreclose and, if effectively presented with smart alternatives, they will often agree to a short sale rather than foreclose. If a short sale is attempted but doesn’t work, your house will likely go to foreclosure.

Can I Still Do a Short Sale if I have more than one more mortgage on my house?
Yes. Each mortgage can be negotiated individually. However, multiple mortgages make a short sale more complicated and time-consuming. Not only do you need the cooperation of the first lender, the second mortgage holder or other junior liens need to agree sale as well.

What Is a Satisfaction?
A lender may agree to accept less than it is owed as complete and total satisfaction of the debt and release its lien against the property. Your note and obligation to the lender are satisfied for less than you owe. When the property is sold, the debt is paid off completely. Sometimes short sale negotiations are successful in obtaining complete satisfaction. Sometimes all that can be obtained is a release.

What Is a Release?
A lender may offer to “release” its security interest against the property in exchange for less than the total amount of the note. A release will allow the property to be sold without paying off the obligations of the note. However, the note is not satisfied. The advantage of a release is it allows the property to be sold and helps you avoid a foreclosure. The disadvantage is the remaining debt on the property (sometimes referred to as a deficiency) still exists. You are still liable for the note. In other words, you still owe the money. In reality, it’s not likely that the lender will pursue the deficiency unless you have other significant assets. Furthermore, if you don’t attempt a short sale and the property goes to foreclosure, you can be liable for the full amount of remaining debt on any additional mortgages beyond your first mortgage.

Are There Tax Consequences?
When a lender cancels or forgives your debt, the tax laws may consider the forgiven debt as taxable income. The IRS “Insolvency Clause” allows many short sale sellers exemption from tax liability for forgiven debt. Since there are additional tax considerations to keep in mind, you should always consult a tax professional.

Can I Keep My House Through a Short Sale?
No, the purpose of a short sale is to get the property sold, You do not keep the house. Just like a traditional sale, you will be moving, typically when the sale closes. Some sellers choose to move before the house closes. You will not be allowed to remain in the house. If your intention is to remain in your house, you can help you other options besides a short sale.