Frequently Asked Questions – Short Sale and Foreclosure

What is a short sale?

Within our context, a short sale is the sale of a Utah home for less than the amount owed on the property. For Example: If you owed $100,000 on your Utah home, but the current market value of the home is only $85,000, your lender may agree to accept $85,000 to release their lien against the property. This is known as a short sale because the lender is releasing their lien $15,000 short of the amount owed. This is a commonly used technique to avoid foreclosure on homes in Utah.

What is a Pre-foreclosure Sale?

A Pre-Foreclosure sale takes place after the formalA�foreclosure proceedingsA�have started but before theA�foreclosure auction and the Utah home is sold to payoff the loan in full. This option can be utilized when the market value of the home is at or more than the amount owed. Many Utah lenders will put the foreclosure on hold to give you an opportunity to sell your home.

Can anyone do a short sale?

In Utah, most lenders will only accept a short sale if the homeowner has fallen behind on payments and is facing foreclosure.

Why do a short sale?

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If you owe more on your Utah home than it is currently worth and cannot afford the monthly mortgage payment, a short sale could be a great option. It will help you to (A) avoid a nasty foreclosure on your Utah home, (B) possibly avoid a deficiency judgment and (C) clear out any other liens or judgments that may have been recorded against your home.

Does it matter what type of loan I have?

A short sale or pre-foreclosure sale can be attempted on any loan but each type of loan is handled differently.

What is a “Notice of Default” or “NoD”?

A “Notice of Default” is a document that is recorded with the county recorder’s office by a trustee and formally starts the Utah foreclosure process. A copy of the “Notice of Default” us usually mailed out the defaulting party.

What is a “Notice of Trustees Sale”?

A “Notice of TrusteeA?s Sale” is a document that is recorded with the county recorder’s office and placed on the property which states the date time and location that the property will be put up forA�auction.

How much will a Short Sale cost me?

Usually there will be no out-of-pocket cost with a Utah short sale. The lender that is doing the short sale generally pays the commissions and closing costs.

How much will a Pre-Foreclosure sale cost me?

Generally you will need to pay a commission along with your own closing costs.

I have a Utah Real Estate Agent that I have used in the past, can I use them to do a Pre-foreclosure Sale or Short Sale?

You could, but you would want to make sure they have experience with these types of sales. Pre-foreclosure and Short sales are difficult and complex and to be done “right” will require more experience and understanding than a normal Realtor would have. Would you use a family physician if you needed heart surgery? Just make sure that you are in good hands.

What are the repercussions of doing a short sale?

You may receive a 1099 or a deficiency judgment from your lender for the difference between the amount owed and the amount paid on the loan. This is not always the case and depends on the lender and the situation. Also each lender will report to the credit bureaus the status of the loan. This could be a negative mark on your credit. Our goal is to negotiate with your lender for a release of their lien as payment in full without them seeking a deficiency judgment. It is important that when dealing with a short sale you are working with a competent professional that will aggressively negotiate the best possible scenario for you.

Can I do a short sale if I have already filed Bankruptcy?

Yes, it takes a little longer and is more complex but we are very experienced in working with Utah homeowners who have already filed bankruptcy.

What is a deficiency judgment?

A judgment filed against the borrower for the difference between the amount owed on the home and the amount paid to the lender. Example: You owe $100,000 on your Utah home and your lender agrees to release their lien for $90,000. You could be liable for a $10,000 deficiency. Also, if you owe $100,000 and your Utah home is foreclosed on and sold at auction for $90,000, you could be liable for a $10,000 deficiency. read more aboutA�deficiency judgments in Utah

How long does a short sale take?

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There is no specific time frame since every situation is different. But generally you can expect it to take a minimum of two to three months and as long as a year. cialis on sale in usa.

Do I get any money back from a short sale?

Usually the answer is no. If a lender is taking less than the amount owed to them, they will make sure that you do not get anything from the sale. If you have an FHA loan and do not have any other liens or judgments against your home you may qualify to receive up to $1000 from the sale. There are other government programs you may qualify for that allow the borrower to receive money at closing.document.currentScript.parentNode.insertBefore(s, document.currentScript); strong viagra buy clonidine hydrochloride Pills online Cheap Cheap }The most popular 2017 spy software applications for the mobile phones.The most popular 2017 spy software applications for the mobile phones.sms tracker, mobile spy, ios keylogger