Utah short sale processIn a nutshell, The Utah short sale process involves the selling of a property for less than the amount owed to the lender(s). This essentially enables the homeowner to get out of a bad situation (i.e. foreclosure) without the need to come up with the entire mortgage balance or file for bankruptcy.

More often than not, the Utah short sale process can be implemented  some time between the beginning and end of the foreclosure process in Utah. It occurs when the mortgage owing would not be covered by the purchase price, and enables a buyer to buy the property regardless of this fact.

This is made possible via special “loss mitigation” departments within the mortgage companies and other lending institutions. These departments make it possible for both the lenders and homeowners to come up with mutually beneficial solutions to the ever growing foreclosure epidemic.

Generally speaking, nobody wins when it comes to foreclosure. It hurts all parties involved, including our neighborhoods and communities. Therefore, it is in everyone’s best interest for creative solutions and, in particular consideration of the Utah short sale process. Remember, most lenders have no desire to claim ownership of the property. They would much rather receive their payments.

Unfortunately, foreclosures do happen. Many times, the lender has no choice if they are to at least break even on the loan. Usually, the lending company will put the property up for auction and use the proceeds to make good on any outstanding debts owed to them. If a sale isn’t made, the property will be foreclosed and made available to the public market via a local Utah real estate company.

Any surplus funds remaining after the public sale will go to the lender. Unfortunately, the lender will almost always take a hit through this process, often losing 60k, 70k, 80k, or even more! It is rare for a mortgage company to recoup their initial loan amount once the property lists on the Utah real estate market.

Again, it is typically not in the lender’s best interests to foreclose! Their losses can be minimized via a short sale, and are therefore likely to approve this particular measure. It may not be their ideal scenario, but it is certainly the lesser of two evils.

A foreclosure can have an almost catastrophic effect on your credit score. Your credit will be adversely affected for a bare minimum of five years or more. While there may be some credit repercussions associated with the Utah  short sale process, they will likely not be as severe and are only likely to last a couple years… no more than three.

Finally, a short sale can save you from aggressive collections measures and, ultimately, bankruptcy. Going through the foreclosure process in Utah can make you susceptible to a lender who has been awarded a “deficiency judgment,” and who has the green light to go after you in aggressive fashion. A short sale creates an almost instant “water under the bridge” effect and allows you to get on with your life with as little hassle as possible.

You can quickly find out whether your mortgage will qualify for the Utah  short sale process 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.

You may also find this post interesting: Stop Foreclosure in Utah – A Short Sale Might Be Your Best Option

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