Many lenders prefer a short sale over a foreclosure because foreclosures are expensive and slow for them too. A non-judicial foreclosure in Washington still requires legal notices, a trustee, court filings if challenged, and carrying costs on a property the lender doesn't want to own. A short sale lets the lender recover most of what's owed without taking on a vacant house.
That said, approval isn't automatic. Lenders evaluate your hardship documentation, the offer price compared to the home's market value, and whether other lienholders, like a second mortgage or HOA, are willing to release their claims too. The more organized your package is going in, the faster the lender can act.
Washington's anti-deficiency protections also shape how lenders think about these deals. Because lenders generally can't pursue a deficiency judgment after a non-judicial foreclosure, some are more willing to approve a short sale that nets them a similar or better outcome than waiting out the foreclosure process. That's a point worth understanding, not assuming. Short sale agreements are a separate contract from foreclosure law, and deficiency waivers have to be addressed directly in your approval letter, not assumed because of how Washington treats foreclosures.
Your hardship letter, financial documentation, and the offer itself all factor into the lender's decision.
This is general information, not legal advice. Short sales are subject to lender approval, and results cannot be guaranteed. Homeowners should consult qualified legal and tax professionals regarding the potential consequences of a short sale or foreclosure.
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