What to know about Utah short-sales.

By
Real Estate Broker/Owner with Carte Blanche Realty

What is a Utah short sale?
A real estate short sale is a process where the lender allows a homeowner to sell a property for less than the mortgage balance. In a short sale the lender agrees to accept proceeds from the sale that fall "short" of the amount owed on the property’s loan. Lenders only agree to short sales if they receive a full and complete package meeting the specific guidelines of that particular lender.
Why do lenders agree to short sales?
Why would a lender agree to take less than what is owed to them? The foreclosure process is long and costly to the lender so, in most cases, the lender is willing to consider taking a loss through a short sale versus a significant loss through foreclosure. Many lenders look at a short sale as a better alternative to foreclosure.
How can I qualify for a Utah short sale?
Most short sales occur when a homeowner can no longer continue making the monthly mortgage payment. Although each lender has their own rules they follow when considering a short sale, here are some general guidelines:
• The borrower must have a financial hardship (loss of income, reduction of income, death in family, divorce, job transfer, excessive debt).
• The borrower must be behind on mortgage payments.
• The home must be listed for sale with a licensed real estate agent.
• The borrower must provide a full financial disclosure (pay stubs, bank statements, tax returns, financial statement, and hardship letter).
What are the benefits of a Utah short sale over a Utah foreclosure?
• Minimize credit damage
• Reduce the deficiency balance
• Lower your tax liability.
• Gives the borrower an opportunity to negotiate best possible terms with the lender.
What is the difference between short selling and foreclosing?
• A foreclosure negatively affects your credit score. Not only will this drastically drop the score, but will prevent you from obtaining any type of financing for 7-10 years. Even after this period, the mortgage loan application will always state that the borrower had a foreclosure, and can seriously affect that your ability to obtain financing and credit in the future.
• A short sale will affect the your credit, but not nearly as much as a foreclosure. The credit will be negatively affected for approximately 24 months.
• With a foreclosure, a public notice is filed and privacy is not maintained. The short sale process ensures that the seller will maintain their privacy.
• With a foreclosure, a lender can assign a judgment against the homeowner and garnish remaining assets such as bank accounts, income, etc. With a short sale, you walk away free and clear without any deficiency judgment actions taken.

 

Need help in Southern Utah with your buying or selling a short sale? Contact the Cedar City real estate experts at Carte Blanche Realty.

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Rainmaker
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Sharon Kowitz
CRS-SRES-ABR-GRI-E-Pro-CREN Fonville Morisey Cary, NC - Cary, NC
Cary, NC Relocation Specialist ~ Buying or Selling

Great info, thanks for sharing!

May 17, 2016 12:48 PM #1
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Fred Griffin presently on Leave of Absence
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Short sales are dying out in Florida... although we still lead the nation in Foreclosures.

May 17, 2016 03:44 PM #2
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Robert May
Robert W May - Lethbridge Real Estate - Lethbridge, AB
Real estate consulting

Hi Bret Murie welcome to Activerain.  Feel free to add me or follow me and lets connect.

May 17, 2016 05:31 PM #3
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Robert May
Robert W May - Lethbridge Real Estate - Lethbridge, AB
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Congratulations on jumping right in and writing your first blog post.  The comments section here is where you will usually find the most active members of the site.  It is a good place to make contacts and interact.

May 17, 2016 05:42 PM #4
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
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Welcome to active rain.

May 17, 2016 09:15 PM #5
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Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

WELCOME TO ACTIVE RAIN! It is a great place to share information, make friends and learn a lot - I hope you will continue to participate

May 17, 2016 10:08 PM #6
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Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
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Welcome to Active Rain - as REALTORS® who have been here for almost 10 years, it's well worth it!

 

May 17, 2016 11:41 PM #7
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Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
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And thanks for a well written and informative post about Short Sales in Utah!

We're hoping to read more from you - so we are now "following" you!

CLICK!!

 

May 17, 2016 11:43 PM #8
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Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Bret Murie thank you for sharing this information on short sales in Utah.... it's shocking to see how many short sales are still coming on the marketing....will the supply every end???

May 18, 2016 01:34 AM #9
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Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

and welcome to ActiveRain.... it's a great place to learn, share, market and network.....and I hope you enjoy all of it....

May 18, 2016 01:36 AM #10
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RLAH Real Estate - Washington, DC
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Hey, Bret!  Welcome to ActiveRain.  And very thorough post on short sales.  They are still out there.

May 18, 2016 10:02 AM #11
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Mimi Foster
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Welcome to the wonderful world of ActiveRain. Feel free to ask if you have any questions at all. 

May 18, 2016 11:02 AM #12
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
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Hi Bret,

Welcome to Active Rain, looking forward to reading many more of your posts, let me know if there is anything that I can do to help as you get started here.
Bob

May 18, 2016 01:23 PM #13
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Robert May
Robert W May - Lethbridge Real Estate - Lethbridge, AB
Real estate consulting

Hey there Bret, is the shortsale market still going strong?  I had heard that it was drying up.

May 18, 2016 01:42 PM #14
Rainmaker
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Sharon Kowitz
CRS-SRES-ABR-GRI-E-Pro-CREN Fonville Morisey Cary, NC - Cary, NC
Cary, NC Relocation Specialist ~ Buying or Selling

...Also, welcome to Active Rain and congratulations on your first post!

May 18, 2016 01:57 PM #15
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Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Bret Murie, Welcome to Active Rain.  It is interesting to see the difference in short sales and foreclosures.

May 18, 2016 02:30 PM #16
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Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

Hello, and welcome to the best real estate blogging platform. Great first blog on shortsale.  It is well written and informative to homeowners who still need to shortsell their homes.

May 18, 2016 03:42 PM #17
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Robert Vegas Bob Swetz
Realty ONE Group - Las Vegas, NV
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Hello Bret ...

Congrats on your first post and welcome to Activerain.

May 19, 2016 07:58 AM #18
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Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Bret,  Congratulations on your first blog post on ActiveRain.   The short sale niche is definitely an interesting one.  

And, Welcome to the world of Active Rain blogging.  It is an extremely valuable platform to connect with other agents and potential clients.  If you haven't already done so, I recommend you check out the "Resources" section and click on "Getting Started".  

May 19, 2016 09:54 AM #19
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Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

Bret,

welcome to the Active Rain community! 

Congratulations on your first blog post. I'm sure, we all love to know things about Utah real estate. 

May 21, 2016 04:44 PM #20
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