Utah Short Sales

Everything you need to know

After reading this article you will have a good understanding of what Utah short sales are exactly; hopefully clearing any confusion you may have.

We are suddenly confronted with many terms that we are not familiar with; this article will help you with the term short sales.
The sad reality of our recession and real estate implosion is that many of us are finding that our dream for home ownership has been literally murdered by foreclosure.

Although many who bought during the boom may not have been adequately prepared, and should not have been allowed to obtain the type of financing that later proved to be unsustainable; there are many others who are finding themselves in the worst predicament of their lives through no fault of their own.

Millions are affected

If you are reading this, you might be someone who either has lost a job or taken substantial pay cuts ( if you still have a job.) Okay, there can be many reasons, medical bills, divorce, etc. It doesn’t matter the reason, there are many. The point is decisions have to be made, and it’s best if you educate yourself; information is power; you are in the right place to learn a lot more about one option, the ” Utah short sales process”, so here goes.
By the way, if your mortgage is in or close to default, there are a number of banks today that work with homeowners in order to facilitate a short sale, even if they haven’t missed any payments; for no other reason than to avert problems down the line.
Short selling your home may be one way to steer clear of foreclosure if you are having problems paying your mortgage. It is a process that will protect your credit rating, and make sure you have a brighter future to look forward to.

So what exactly is the Utah short sales process?

A short sale occurs when a home is sold for less than what remains to be paid on the mortgage. Let’s say you bought your house for $400,000 and still owe $300.000 on it. If you sell it at $275,000, the sale is short by $25,000, the difference between the amount remaining on the mortgage and the sale price.
Since 2008, real estate has suffered a drastic drop in value. Nearly one-fourth of the homes in the United States are on the brink of foreclosure. A homeowner who can’t make his mortgage payments and needs to sell his home before it forecloses will have a hard time doing so if he is unable to get a price that is at least equal to what is owed on the mortgage and doesn’t have the cash to make up the difference. If a homeowner can’t keep up with his mortgage payments, then he probably won’t have that kind of money lying around.

Banks want their money

As hard as it may be to believe, many banks would prefer to do a short sale rather than foreclose on the home simply because a short sale will enable the bank to recover more money. A bank’s primary concern is not owning your home but recovering as much of the money that remains on the mortgage as possible.  A foreclosure will only bring in 65 cents on the dollar; a short sale, on the other hand, will allow the bank to recover as much as 85 cents on the dollar. As a result, many banks view a foreclosure as a last resort and would much prefer to participate in a short sale.

Why professional help

The most effective way to proceed with a short sale is to engage the services of an experienced investor or realtor who specializes in and is familiar with Utah short sales. This person knows all the ins and outs of the process and will be able to negotiate the best terms for you. If you try to do a short sale by yourself, the bank may refuse you simply because you don’t fully understand a process that is very specific with respect to the structure and content of the package presented to the lender.

The slightest deviation can result in the sale being rejected. It is vital; therefore, that you have someone in your corner who has a track record of successfully negotiating short sales, someone who knows which departments to contact at the appropriate time and can pursue the sale with patience and persistence.

Slow process

Despite its name, the Utah short sales process is anything but short, given the number of homes that are currently at risk. Expect the process to last several months at a minimum, even with a skilled negotiator working for you. However, the wait will be worth it when your home is sold, freeing up the funds you need to secure your future, and allowing you to begin rebuilding your credit standing quicker.
The short sale is one of the best avenues you can take to avoid the threat of foreclosure. Even if, in the end, the bank decides to deny the sale, the process has given you some much-needed time to save money and prepare yourself and your family for the eventual foreclosure.

Strict documentation requirements

What requirements must you meet for the home to be eligible for a short sale?
First, in order to qualify for a short sale, you must prove that you have suffered financial hardship that is preventing you from making mortgage payments. Do you have unexpected expenses such as medical bills, an interest rate adjustment, a newborn to care for? Or perhaps your employer cut back on the hours you work; you lost your job, or went through a costly divorce.  You will have to craft a hardship letter, describing these extenuating circumstances.
You must furnish documentation along with the hardship letter which substantiates your claims of financial distress. This includes financial data similar to what you had to submit to qualify for the loan when you purchased your home. The investor or realtor you engaged to help you through the process will assist you in crafting a strong claim of hardship, providing sample letters that you can refer to for guidance.
The goal of the hardship letter is to persuade the lender to accept the difference resulting from the short sale; therefore, in addition to being moving and personal, it needs to convincingly demonstrate to the lender that the home owner’s hardship is real and that agreeing to a short sale instead of foreclosing on the home would be in the lender’s best interest.
Your short-sale advisor will stress the importance of taking the time required to craft a hardship letter that thoroughly documents – with dates, clear explanations, and supporting data – the home owner’s inability to continue making mortgage payments. In essence, the hardship letter is an impassioned plea to the lender to accept the short sale.

Laborious next step

The next important step is going to be the job of the investor or realtor whom you have chosen to help you through the Utah short sales process. They will be required to properly compile the complete short sale package of information to present to your lender. After that, the next crucial step will be the relentless and continual follow up with the lender; this is where most fall short.

The advantage of the seasoned professionals at Stop Utah Foreclosure and its team of experienced negotiators is precisely that they have the ability to concentrate completely on this process. There are no other competing issues to distract from the job at hand. However, the most glaring benefit is that your main concern about finding a buyer once the short sale is approved is not an issue, since Stop Utah Foreclosure is committed to purchasing your house from the get go. This alone can be the difference in your success to completely avoid your foreclosure.

Find out whether your mortgage will qualify for a Utah short sales solution by calling us at 801-718-6156, or if you prefer, fill out the form on the right. We can usually get back to you within 24 hours.

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