Is A Utah Short Sale Right For You?

A Utah short sale is an alternative to a foreclosure. This minimizes the loss for both you, the homeowner, and for the lender and is generally the preferred method of handling a potential foreclosure for all parties involved. A short sale occurs when the lender is willing to accept the proceeds for the sale of the defaulted property even though it may fall short of the amount that is owed on the borrowers loan. While it may seem that the lender is losing out on money by agreeing to a short sale the truth is that the lender will be saving the hassle of judicial proceedings and the long drawn out process of foreclosure which not only takes a large amount of time to commence but also costs the lender addition sums in order to file and employ the legal representatives necessary. In lieu of the long and arduous process most lenders are amenable to the idea of a short sale.

Some of the general guidelines for qualifying for a Utah short sale are as follows, though they are subject to change depending on the specific mortgage investor/lender the borrower has entered into the agreement with; the borrower most be able to provide proof of a financial hardship that has led to the inability to keep up with the agreed upon monthly payments such as loss or reduction of monthly income, a death or severe illness in the family, excessive debt, a job transfer, a divorce, etc. The borrower needs to be markedly behind in their monthly payments. The property must become listed with a real estate agent that is licensed, preferably with a short sale specialist for the specific Utah jurisdiction where the property is located. Finally the borrowers needs to willingly provide a complete financial disclosure to the lender consisting of bank statements, pay stubs, tax returns, any hardship letters and financial statements as well.

The benefits of a short sale include minimized deficiency balance, minimized credit damage, the chance to negotiate agreeable terms with the lender, and minimized tax liability. Generally the short sale process includes listing the property with a short sale specialist and licensed real estate agent, receiving an offer for the property, submitting a formal short sale request package to the lender including the accepted offer, the lender will then consider and analyze the offer and request against the market value of the property. The lender then has the power to accept the offer, counter the offer or reject the offer and short sale request outright. If an agreement is reached the buyer and seller become under contract and the buyer will have 30 days to close on their purchase.