Utah Foreclosure OptionsHere are some of your options to avoid the Utah foreclosure process:

1. Standard sale – In this scenario, the homeowner essentially liquidates his or her property and uses the payout to take care of any outstanding balances held against the property (loans, back taxes, etc.), after which there may be some cash left over for the individual to pocket. Call us if you want us to make an offer on your house. (801) 718-6156

2. Refinancing – While this is a very popular option, it often comes with its own set of challenges. For starters, it can be tricky for many homeowners to qualify simply because they don’t have the credit or equity to justify the new loan. Additionally, if the individual is able to qualify, they are typically met with inflated payments. This option is for individuals who need to buy themselves some time to get their situation taken care of, and should be used cautiously.

3. Short Sale – This option is great for sellers looking to preserve their good credit standing. It essentially entails dramatically lowering the asking price and just “letting the property go” without any hope of turning a profit. In fact, the majority of lenders forbid the seller from pocketing any money. This process must be approved by all lien holders, if any.

4. Repayment Plan – With a repayment plan, both the homeowner and the lender must agree upon a specified set of terms (generally including higher payments than the standard monthly mortgage dues), and then draw up a legally binding written contract. The homeowner will then make these payments until such time that all delinquencies are paid off.

5. Loan Reinstatement – Via this particular option, the homeowner makes good on his or her loans by paying off all outstanding debts at once. This includes all back payments and late fees, legal fees, foreclosure fees, and even the unpaid principal.

6. Forbearance Agreement – This is essentially “taking a short break” in order to get caught up. In this process, the lender may grant the homeowner a leniency period in which payments are either reduced or halted altogether. This will usually be granted for a period of either 3 or 6 months.

7. Loan Modification – This is simply the alteration of current mortgage terms. For example, if the homeowner is currently paying an adjustable rate, he or she can change this to a fixed rate. Other modifications may include the extension of the loan’s term, an interest rate change, and even the inclusion of delinquencies into the actual balance of the mortgage.

8. Foreclosure – Through this process, the homeowner’s property is seized by the lender due to nonpayment. This can have a significant negative impact on the defaulter’s credit, and his or her ability to purchase a home in the future. In addition, shortages and liens may be filed by the mortgage company, which can cause a whole host of new problems for the owner.

9. Deed-In-Lieu – Here, the homeowner will put control of the property entirely in the lender’s hands. The property is deeded back to the lender and the homeowner is thereby released of all of his or her mortgage responsibilities.

10. Bankruptcy – There are a number of options when it comes to filing for bankruptcy, and these should be carefully considered in order to choose the right type to best assist with the individual’s specific situation. A bankruptcy will stay on the filer’s credit for as long as ten years. One benefit of declaring bankruptcy is a lengthy time span (typically several months) in which to pay off the outstanding balance.

After studying all of the Utah foreclosure options above, you may decide that a short sale is the better one for your situation. You can quickly find out whether your mortgage will qualify for a short sale by calling us at 801-718-6156, or, fill out the form on the right. We can usually get back to you within 24 hours.

Photo credit: Tampa Bay Informer