During the foreclosure process your 2nd lien holder doesn't have any recourse if the 1st takes the house to auction. They can purchase the house at auction and will have to compete with other investors, or they must write off their losses. During the foreclosure process nobody wins. The 1st lender gets a house back that they must sell in order to recoup and money. The homeowner loses their house and must move somewhere else. The 2nd lien holder doesn't get anything and must move on.
With a short sale your 2nd lien holder has the ability to negotiate a settlement with the seller and 1st lien holder prior to closing. During the foreclosure process nobody wins. The 1st lender gets a house back that they must sell in order to recoup and money. The homeowner loses their house and must move somewhere else. The 2nd lien holder doesn't get anything and must move on.
With a qualified team working for you to list, sell, and negotiate with the bank you will have a smoother process start to finish. It can take several months to gain approval on a short sale and so all parties must be patient.
To find out if you qualify for a short sale call today or fill out the contact form. We are happy to assist you!
Spokane Short Sale Team
