Featured Property

  • 6035 24th Ave S
    Seattle, WA
    $385,000
    2 beds | 2 baths
  • 1319 Central Ave S G
    Kent, WA
    $77,000
  • 12029 35th Ave NE B
    Seattle, WA
    $514,000
    3 beds | 2 baths
  • 22709 52nd Ave E
    Spanaway, WA
    $289,000
    3 beds | 2 baths
  • 13040 105th Pl NE
    Kirkland, WA
    $650,000
    4 beds | 3 baths
  • 1 Undisclosed Rd
    Lake Stevens, WA
    $850,000
    8 beds | 3 baths
  • 1519 22nd St NE 1623
    Auburn, WA
    $239,995
    3 beds | 2 baths
  • 20729 13th Ave S
    Seatac, WA
    $250,000
    1 beds | 1 baths
  • 5916 212th Place SW
    Mountlake Terrace, WA
    $499,995
    3 beds | 2 baths
  • 20856 Interantional Blvd
    Seatac, WA
    $100,000
  • 20211 6th Ave S
    Des Moines, WA
    $439,000
    4 beds | 2 baths
  • 18654 4th Ave SW
    Normandy Park, WA
    $1,350,000
    5 beds | 3 baths
  • 245 S 126th St
    Seattle, WA
    $390,000
    3 beds | 2 baths
  • 12103 SE 161st ST
    Renton, WA
    $360,000 | 1 baths
  • 10725 16th Ave SW
    Seattle, WA
    $450,000
    4 beds | 1 baths
  • 5120 S Roxbury St
    Seattle, WA
    $699,900
    9 beds | 3 baths
  • 11928 122nd St E
    Puyallup, WA
    $555,000
    3 beds | 2 baths
  • 30008 28th Pl S
    Federal Way, WA
    $400,000
    3 beds | 2 baths
  • 26010 11th Place S
    Des Moines, WA
    $475,000
    3 beds | 1 baths
  • 13725 13th Ave Ct E
    Tacoma, WA
    $315,000
    2 beds | 2 baths
  • 622 5th St SE
    Auburn, WA
    $399,000
    3 beds | 2 baths
  • 13927 63rd Ave Ct E
    Puyallup, WA
    $495,000
    4 beds | 2 baths
  • 17417 4th Avenue SW
    Normandy Park, WA
    $1,500,000
    4 beds | 3 baths
  • 1623 SW 166th Street
    Burien, WA
    $445,000
    2 beds | 1 baths
  • 17422 4th Avenue SW
    Normandy Park, WA
    $675,000
    3 beds | 1 baths

Your First Home

Looking to purchase your first home? Click here to request a complimentary copy of Your First Home: The Proven Path to Home Ownership.

9 Options When Facing Foreclosure in Federal Way
 
1. Do Nothing: If you choose to do nothing, you will most likely lose your home. Your credit report will disclose this damaging information for years to come. This is certainly not the best option!
 
2. Payoff or Refinance: You may completely pay off the entire loan amount you owe your bank(s) plus any default amount and fees or you could refinance the current loan. The new loan you get could have a higher interest rate and there may be a pre-payment penalty because of the recent default. The important thing to know here is that with this option, there would have to be equity in your home.
 
3. Reinstatement: You may pay the entire default amount plus interest, attorney fees, late fees, taxes, and missed payments and “reinstate” your loan (bring your loan current).
 
4. Loan Modification: A loan modification is a permanent change in one or more of the terms of your loan and can sometimes result in a lower payment for you. Contrary to popular belief (media exploitation), most people do not qualify for this alternative and most banks don’t want to help you with this option.
 
5. Forbearance: A forbearance is an agreement made between you and your bank in which your bank agrees not to exercise its legal right to foreclose on your home and in which you agree to a payment plan that will bring you loan current over a certain time period. Information will be required from your bank to show that you are able to meet the new payment plan requirements.
 
6. Partial Claim: A partial claim is a loan from your bank for a 2nd loan to include back payments, costs and fees. Under the partial claim option, a bank will advance funds on behalf of you in an amount necessary to reinstate a delinquent loan (not to exceed the equivalent of 12 months PITI). The bank will execute a promissory note and subordinate (2nd) mortgage. Such loans are due in full and payable when you either pay off the first mortgage and/or no longer own the property. 
 
7. Deed in Lieu of Foreclosure: A Deed in Lieu of Foreclosure is an option in which you voluntarily deed the home back to your bank in exchange for a release from all obligations under the mortgage.  A Deed in Lieu of Foreclosure may not be accepted from homeowners who can financially make their mortgage payments. The consequences of this option are nearly as severe as that of an actual foreclosure and there are certain eligibility requirements for this option as well.
 
8. Bankruptcy: Bankruptcy is an option that can liquidate debt and/or allow more time for you to stay in your home. There are several types of Bankruptcy and you would need to consult a qualified Bankruptcy attorney for more information…
    -Chapter 7 (Liquidation): Completely settles personal debt.
    -Chapter 13 (Wage Earner Plan): Payments are made toward a plan to pay off debts in 3-5 years.
    -Chapter 11 (Business Reorganization): A business debt solution.
 
9. Sell the Home: There are two ways for you to sell your home if facing foreclosure…
a) Sell with Equity: If your home has equity (money left over after all loans and monetary encumbrances are paid), you may sell your home without lender approval through a conventional home sale. In this case, you could get cash from the sale proceeds. 
b) Sell with No Equity/Short Sale: If your home does not have equity, it is still possible to sell your home through a transaction called a Short Sale. Simply put, a Short Sale is used to describe the sale of a home in which the homeowner owes the bank more than the home is worth. The bank agrees to allow the home to be sold for less than what is owed (AKA “Short Sale”) with the help of a Real Estate Professional.