Chase and Select Portfolio Servicing Forgive $251,500 Mortgage Debt in Covington, WA Short Sale

Divorce and Reduction in Income Lead to Successful Short Sale; Homeowner Gets $3000 Cash Incentive

Home Short Sale in Covington, WA, King County, due to divorce and reduction in income
Richard did a great job explaining the process, responding to my calls, and being timely in processing the paperwork to complete the sale of my home. He works with a team of professionals that treated us with respect throughout the process.
Chereis, Covington, WA

Reduction in Income and Divorce Result in Mortgage Default

Faced with a divorce and a large reduction in income, Chereis knew she couldn’t afford to continue making mortgage payments on her home in Covington, WA. Complicating things even further was the fact that she and her ex-husband had two mortgages, and the amount of mortgage debt was almost double what the home was worth. They had an extremely underwater mortgage. Mortgage default followed by foreclosure seemed unavoidable.

Short Sale Helps Homeowner Avoid Foreclosure

Ready to move on and start a new life, Chereis was hoping to avoid the hefty credit ding that comes with foreclosure. When Chereis contacted Washington Property Solutions, we scheduled a free consultation with our real estate attorney so she could talk through the options that were available to her and come up with the best plan for her circumstances. Her divorce and reduction in income qualified her for a short sale. And when she realized that a short sale has much less impact than foreclosure on an individual’s credit score, she decided to move forward.

Lender Permanently Forgives $251,500 in Mortgage Debt; Homeowner Receives $3000 in Cash Incentives

Having two mortgages makes a short sale much more complicated, since it involves negotiating with two different entities. Chereis owed $426,000 on her mortgage with Select Portfolio Servicing and $100,000 on her mortgage with Chase. We were able to successfully negotiate with both lenders to approve a short sale. Select Portfolio agreed to accept $267,000 in proceeds from the sale as full and final settlement of her mortgage balance. Chase accepted $7,500 as full settlement of her mortgage debt. Both lenders permanently waived her of ever having to repay the $251,500 shortfall. And Chereis paid nothing out of pocket to sell her home.

A Down Payment on a New Start

Chereis got some additional good news. She received a check for $3000 as part of the federal government’s Home Affordable Foreclosure Alternatives (HAFA) Program. HAFA provides cash incentives to encourage homeowners to do a short sale and avoid foreclosure. It can be spent however the homeowner sees fit.

SHORT SALES RESULTS:

  • Short Sale Approved
  • Two Mortgages Wiped Clean
  • Full Satisfaction of $251,500 in Mortgage Debt
  • Debt Permanently Forgiven
  • $3000 Cash Incentive Paid to Homeowners

If you’re underwater on your home mortgage and need to sell, it’s essential to have the right broker advocating on your behalf. Short sales are complicated transactions. Working with a broker experienced specifically in the short sale process in Washington State ensures your sale will go smoothly.

Washington Property Solutions is the state’s leading short sale solution provider.

We offer a proven success rate, a team of seasoned Windermere short sale experts, and a depth of experience with lenders across the country that is unmatched. The bottom line: We get your home sold.

Call us at 425-381-2233, or email us
to schedule your no-cost, confidential, short sale consultation

Other helpful resources:

About Our Free Attorney Consultations
Information about the HAFA Program
The Benefits of a Short Sale Over Foreclosure
Short Sale FAQs
More Testimonials from Our Clients
Read More Covington, WA Short Sale Success Stories

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