Wells Fargo Forgives $68,000 from Two Home Mortgages
Underwater Mortgage Prevents Traditional Home Sale
When Robert L. got a great software job in 2005 in Washington State, he was thrilled that his company allowed him to work two weeks on site and the rest from his home in Nevada. His income allowed he and his wife to buy a condo in Kent, WA that Robert used for a home base while working in Washington. Several years later when the company was sold, Robert no longer needed the condo. Unfortunately, they had bought at the height of the housing bubble and taken out a second mortgage, and the condo was now worth considerably less than what they paid for it. Robert and his wife were underwater, so they were unable to do a conventional home sale.
Homeowners Try to Keep Condo by Renting
Because Robert had a good salary, the couple were able to continue to make the mortgage payments for a year, even though the condo was empty. It looked like good news when a colleague of Robert’s rented the condo. Unfortunately, Robert discovered that the market rate for rent in the area didn’t cover the mortgage payment, so he and his wife had to pay out of pocket each month to cover the difference. Their hope was that if they waited, property values would increase enough to give them equity in their home so they could sell it for what they owed their lender. Then Robert lost his job.
Job Loss Qualifies Robert for a Short Sale
Despite all his efforts, Robert was unable to find another job. Soon his unemployment benefits ran out. Robert’s wife had steady employment, but the couple soon realized that with the significant loss of Robert’s income they couldn’t afford to subsidize the mortgage payments on the condo as well as pay for their home in Nevada. They knew they had limited options, and both wanted to avoid foreclosure.
Robert contacted Washington Property Solutions, and learned that a short sale has a number of benefits over foreclosure. He was told that the hardship he had – job loss – qualified him for a short sale. Since they were underwater on their home mortgage, it became clear that their only hope for avoiding foreclosure was to request that their lender approve a short sale.
Wells Fargo Eliminates $68,000 from Two Home Mortgages
Short sales are always complicated, but a second mortgage makes things even more difficult since you need to negotiate with both lenders. There was good news in Robert’s case, since both his first and second mortgage were with Wells Fargo. Washington Property Solutions worked with their lender and successfully negotiate a short sale on their behalf. Wells Fargo agreed to accept the proceeds of the sale of their condo and permanently forgive the remaining $68,000 balance on their mortgages. Robert and his wife paid nothing out of pocket to sell their home.
Couple Receives $10,000 Cash Incentive from HAFA
There was even more good news. Washington Property Solutions was able to qualify Robert and his wife for the federal government’s Home Affordable Foreclosure Alternatives (HAFA) Program. The program provides incentives for borrowers to do a short sale in order to avoid foreclosure. Robert and his wife received a $10,000 Cash Incentive from HAFA for completing their short sale. The money can be used however they like.
SHORT SALES RESULTS:
- Short Sale Approved
- Two Home Mortgages Permanently Erased
- Full Satisfaction of $68,000 in Mortgage Debt
- $10,000 HAFA Cash Incentive Received
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
Benefits of a Short Sale Over Foreclosure
Short Sale FAQs
More Testimonials from Our Clients
Read More Short Sale Success Stories in Kent, WA