Can I Sell My House During Foreclosure in Washington State?
The short answer
Yes. The owner keeps ownership until the trustee's sale, so the house can be sold and closed before the sale date. The loan and missed payments are paid at closing, and the rest of the money goes to the owner. Start early, because a sale usually takes several weeks to a few months to close.
Why selling usually leaves the owner better off
At a trustee's sale the house goes to the highest bidder, often for less than it would bring on the open market, and the costs pile on. A normal sale reaches every buyer, and after the loan and costs are paid at closing, the rest goes to the owner. Many older owners have years of equity at stake.
How the timing works
Preparing the house, finding a buyer and closing usually takes several weeks to a few months. Once a Notice of Trustee's Sale is given there are at least 90 days to the sale, which is enough only if the work starts right away. Let the lender and a housing counselor know the house is being sold.
If the house is worth less than what's owed
A short sale, where the lender agrees to accept less than the balance, or a deed in lieu of foreclosure, usually does less damage than a foreclosure. Both need the lender's approval, and a CPA can explain any tax on forgiven debt.
Fast cash offers
Be careful with anyone who offers to buy quickly for cash on condition that the owner signs the deed over before closing, or who promises the owner can stay and buy it back later. Those are the patterns of foreclosure rescue scams.
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Professional Disclosure
Real Property Planning is an educational and connection hub. It does not provide legal, tax, accounting, financial, brokerage, or appraisal services. Professionals referenced on this site are independently licensed and operate through their own separate businesses. Real estate brokerage services are provided by David Stein, a licensed Washington broker, through eXp Realty. Appraisal services are provided by David Stein through Stein Appraisal. Read the full disclaimer.