Received Military PCS Orders and Need to Sell Your House?
Receiving Permanent Change of Station (PCS) orders is part of military life. If you own a home, it can be a particularly stressful time. Few military families can afford to maintain two households, and you usually can’t rent the home for enough to cover the home mortgage payments. As a result, the rest of the family often has to stay behind to try to sell the property. If you owe more on your home mortgage than you home is worth, a short sale may be a good option for you. In a short sale, your lender agrees to let you sell your property for less than the balance you owe on your mortgage. Military service members with Freddie Mac or Fannie Mae loans are eligible to sell their homes in a short sale even if they are current on their home mortgage.
If you’ve received PCS orders and are underwater on your home mortgage, a short sale can help you avoid foreclosure.
To qualify for a short sale there are criteria you must meet. Every situation is unique, but the general criteria are:
- You need to sell your home.
- You owe more on your home mortgage than your house is worth.
- A PCS qualifies you for a short sale.
If you’ve received PCS orders and need to sell your house, a short sale has benefits over foreclosure.
Whether you should do a short sale or let your property go to foreclosure depends on your situation. In most instances, a short sale makes more sense than foreclosure.
- When you want to obtain a loan to purchase a home in your new location, more opportunities will be available to you if you do a short sale.
- While doing a short sale will negatively affect your credit, there are many benefits to choosing a short sale over foreclosure.
- As a member of the military, you can be current on your home mortgage payments and still do a short sale. In fact, if you are current on your mortgage through a short sale, you can qualify for an FHA home loan afterwards without any waiting periods. The same option will not be available following a foreclosure.
- You may qualify for cash incentives by doing a short sale rather than going through foreclosure.
- In Washington State, an underwater homeowner can lose his/her home to foreclosure to the first mortgage lien holder and still owe the balance from the second mortgage or other lien holders.
Washington Property Solutions has helped over 1400 Washington homeowners successfully avoid foreclosure and get a fresh start, with no out-of-pocket cost to you. You can trust us to take care of all the details.
Since 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. This is particularly critical when a Permanent Change of Station is involved in the sale of your home.
Washington Property Solutions offers FREE real estate attorney consultations as part of our service.
Call us at 425-381-2233 to schedule a free confidential consultation.