Wells Fargo Forgives $86,600 in Home Mortgage Debt with Everett, WA FHA Short Sale

$6,500 HOA Lien Settled; Homeowner Receives $500 Cash Incentive

Condo Short Sale in Everett, WA due to illness and job loss

Illness and Job Loss Force Underwater Condo Sale

Betty had purchased her Everett, WA condo 13 years ago, and thought she would live there forever. Then her life got complicated.

Illness forced Betty to take several extended medical leaves of absence, resulting in a reduction in her income. Then Betty’s mother was diagnosed with cancer. As the disease worsened, Betty became her primary caregiver, eventually moving her mother into her home. Due to further leaves of absence from work, her income was drastically reduced and she was struggling financially.

Betty’s mother eventually lost her battle with cancer. The loss of her mother was emotionally difficult, but Betty continued to address her own health issues while working to get out of her financial difficulties. Then Betty was laid off from her job, and she was denied any unemployment benefits. With no income, Betty knew her only option to avoid going into foreclosure was to request that her lender approve a short sale. After contacting Washington Property Solutions she learned that her illness and job loss were hardships that qualified her for a short sale. She decided to move forward.

FHA Home Mortgage Loan and HOA Lien Make Short Sale More Complicated

There were several factors that complicated the short sale of Betty’s home.

First, her home mortgage with Wells Fargo was an FHA loan. The FHA is a government agency, so it’s probably not surprising that FHA short sales are much harder to negotiate than a traditional short sale. The FHA has a number of guidelines that sellers must meet for the short sale to be approved. These rules and regulations require much more paperwork and significantly more time. It can take a year to go through the process of getting an FHA short sale approved.

The other complication was that Betty had a $6,500 lien against her condo for unpaid HOA dues. And Betty just didn’t have the money.

Wells Fargo Forgives $86,600 in Debt; $6,500 HOA Lien Settled

Washington Property Solutions spent nearly a year working with Wells Fargo and the FHA to approve Betty’s short sale. That involved not only navigating the complicated and lengthy negotiation process, but also finding a buyer with the patience to wait it out. Wells Fargo agreed to accept the proceeds from the sale as full payment of Betty’s home mortgage debt. She would never have to pay any of the $86,600 balance. The lender also agreed to pay $2,500 towards the payment of Betty’s HOA lien. But that still left a balance of $4,000. After more negotiation, we were able to convince the buyer to pick up the $4,000. The deal was done.

Homeowner Receives $500 Cash Incentive

In addition to having her home mortgage debt and HOA lien totally wiped clean, Betty also received a cash incentive check for $500 from the FHA for successfully completing a short sale. It can be spent however she sees fit. She paid nothing out of pocket for her condo short sale.


  • Short Sale Approved
  • Full Satisfaction of $86,000 in Mortgage Debt
  • $6,500 HOA Lien Settled
  • Underwater Homeowner Debt Permanently Forgiven
  • $500 Cash Incentive Paid to Homeowner

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 Everett, WA Short Sale Success Stories

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