If you have experienced a financial hardship and you are struggling to make your monthly mortgage payment and need to STOP A FORECLOSURE IN UTAH or across the country, we can help you!!! We understand that defaulting on a mortgage is a very emotional and stressful situation. We are foreclosure and short sale experts that have assisted many individuals and families that are in the same situation. Our team of real estate professionals, tax consultants, real estate and bankruptcy attorneys, and credit repair specialists can help you prevent or stop foreclosure, negotiate a short sale with your lenders, restore your credit, and help you relocate. Not only will we help you throughout the entire short sale process and offer you all of the services to avoid foreclosure, we will help you to relocate and prepare you to purchase another property within two years
Short Sale Questions, Process & Guide
What is a Short Sale?
A short sale is when a mortgage lender agrees to and allows a borrower to sell a property for less than the amount that is owed on the mortgage. A short sale is a way to sell your property before your lender finalizes foreclosure proceedings. Most banks prefer to avoid the added expense of foreclosure proceedings, if reasonable third-party buyer purchase offers are presented to the lender.
What Are the Benefits of a Short Sale Rather Than a Foreclosure?
The negative impact on your credit score is typically less with a short sale than with a foreclosure. In general, after completing the short sale process most lenders will allow you to purchase another property within 2 years. If you are foreclosed on, the lender will report this to the credit bureaus for a period of 7 years. It is also possible to do a short sale and to remain current on your payments. If you are current on your mortgage throughout the short sale process, you can qualify for a loan afterwards without any waiting periods. These options are not available through a foreclosure. Every situation is different, so we recommend that you speak with our preferred real estate attorney who can advise you on the legal and tax implications of a foreclosure and a short sale.
Do We Qualify for a Short Sale?
In order to qualify for a short sale, you must show that you are experiencing a financial hardship. Examples of a financial hardship would be a job loss or a reduction in pay, divorce, death of a spouse, illness, medical emergencies, or you are a few payments late on your mortgage and you are having trouble keeping up. Your property must be worth less than the balance of your mortgage in order to qualify.
How Much Does a Short Sale Cost?
We do not charge any out-of-pocket expenses to list the property, gather documents and to negotiate the short sale with your lender. If you need legal advice or other services, we have professional affiliates that can help you. Your lender will generally pay for the commission and all closing costs. If you have a second mortgage, the first mortgage lender could require you to pay the discounted second mortgage payoff.
Can We Live in The House During the Short Sale Process?
Yes, it is important that you remain in the house during the short sale process as some banks will reject the short sale if the home is vacant.
How Long Does A Short Sale Take?
The short sale process can take a few weeks or several months to get an approval. Each lender has different methods of reviewing and in most cases, there are several levels of management, mortgage insurance companies, and investors that will need to review the short sale package. It is important to be patient during the process and for us to follow up often with the lender’s assigned negotiator.
Can We Short Sale if We Have Filed Bankruptcy?
Yes, the process is longer and is more complex but we are very experienced in working with homeowners that are in the bankruptcy process.
Does A Short Sale Always Work?
No, there is no guarantee that the lender will approve a short sale and if the loan is in default the lender will proceed with the foreclosure process. Typically, if the Notice of Trustee’s Sale has not been recorded, the lender prefers to accept a short sale rather than foreclose.
Short Sale Package & Process
Authorization Letter to Release Information – This document authorizes our team to speak and negotiate terms of the short sale with your lender.
Listing Agreement – This is a standard real estate listing agreement that allows us to market your home and the contract terms are subject to lender and property owner approval.
Financials – The lender will request a financial statement, two years of tax returns, 2 most recent bank statements, two years of W-2 or 1099 documents, and 2 recent pay stubs.
Real Estate Purchase Agreement – Buyers will submit offers subject to the lender’s approval of the short sale. We will submit offers to the lender for review.
Closing Disclosure – The title company will prepare a closing disclosure that will show the lender the potential lender proceeds after all closing and commission costs.
Negotiator – The lender will assign a negotiator to your short sale file usually within 30 days of the short sale request.
Broker Price Opinion – The lender will order a BPO to determine the current value of your property.
Approval Letter – The lender will issue a short sale approval letter that will indicate the lender’s terms and conditions of the short sale.
How do I Purchase a Short Sale Property?
If you would like to purchase one of our short sale properties or buy a foreclosure in Utah please provide your contact information and details of what you are looking for and we will alert you when a property is available.
Equity Real Estate