Without a doubt, the notion of selling a home in a down market can be one of the most nerve racking experiences for a homeowner.
Fundamentally, a short sale is an agreement between a homeowner and a lender to write off the difference between the amount owed on the existing loan and the actual sale price. This is a complicated transaction since the homeowner must negotiate from a negative position, but we can help. Utilize the expert knowledge of our team with over 25 years of experience in Utah. We are here, locally, able to meet with you in person. We utilize only local experts who know Utah foreclosure law. As Certified Short Sale Experts we are able to negotiate your best interests and or refer you to the experts you may need. In most cases we are able to do a thorough, quick and reliable short sale transaction. Postpone a court house sale or even revive a loan modification.
There are numerous factors relevant to a short sale transaction, and our 25 plus years of professional experience can help you identify what is best for your unique housing situation. Your home’s value, overall market conditions, updates in federal, state, and local regulations can all influence the potential of a successful short sale. If you are already in foreclosure proceedings, have attempted a mortgage modification unsuccessfully, and want to review your options, this is a no obligation opportunity for you to learn from an expert whether a short sale might be right for you. There are no up front fees required with this program and the banks pays us.
Foreclosure Vs. Short Sale
As a Certified Distressed Property Expert, I have devoted my career to helping homeowners who face difficult situations, taking them from uncertainty to resolution. Lately I've found a lot of conflicting information going around, especially concerning short sales, which you should know about.
A short sale occurs when a lender accepts the selling price of a home, even if it is less than the full amount owed on the mortgage. For particular homeowners, this can be the best option to foreclosure. Yet, I still hear people suggest that short sales are basically the same as foreclosure.
This is absolutely wrong!
You need to have the CORRECT information. That’s why I'm glad you're here. To help, I’ve prepared a free report—just for you—that compares the realities of foreclosures and short sales side-by-side. Simply provide your information below, and I'll send you this report.
If you have any additional concerns about this issue, or your circumstances are urgent, please feel free to give me a call.801-205-3500 I can help you evaluate your options and get you back on track to a secure financial future.
Losing your home to foreclosure due to an inability to keep up with your monthly mortgage payments is one of life’s most unpleasant experiences. It is also an event that keeps on affecting you long after your home is history by devastating your credit score. Regrettably, most people cannot be 100% sure that they will remain safe from foreclosure because they can’t foresee the unexpected. Occurrences such as serious illness, a major accident, divorce or job loss can happen to anyone. So it’s a good idea to understand the available alternatives should the worst occur.
Of all available options, foreclosure is the worst
The inevitable result of a foreclosure is the lender taking your house. Not only will you lose your house, but the lender can get a judgment against you for the arrearages you owe plus his costs for the foreclosure action. If that isn’t enough, your credit report will be in terminal condition for many years to come, worsening an already bad financial situation and making it very difficult to obtain any other kind of credit. There is no upside to foreclosure. It should be avoided at all costs.
Consider a short sale when foreclosure seems inevitable
A short sale is a popular option for homeowners mired down with financial problems. In this case, you would sell your home for less than what you owe your lender; the biggest problem you will face is getting your lender to agree to a short sale. In many situations, they will not. Experts advise pursuing this option the minute you realize that you are falling behind in your payments and most likely won’t be able to catch up. The longer you wait and the greater the amount you are in arrears, the less likely it becomes that your lender will even be willing to discuss a short sale.
Protecting Tenants at Foreclosure Act of 2009
The Helping Families Save Their Homes Act of 2009 signed into law on Wednesday, May 20th, 2009 (Pub. L. 111–22) provides a 90-day notice requirement and additional protections for tenants in foreclosed properties.
Below you will find the major provisions outlined under Title VII, Protecting Tenants at Foreclosure Act of 2009.
- During the term of the lease, the tenant has a right to remain in the unit and cannot be evicted, except for actions that constitute good cause.- If the lease ends in less than 90 days, the new owner may not evict the tenant without giving the tenant at a minimum 90 days notice.
- At the end of the term of the lease, the new owner may terminate the tenancy if the new owner provides a 90-day notice.
- The new owner may terminate the tenancy if the owner will occupy the unit as a primary residence, and has provided the tenant a notice to vacate at least 90 days before the effective date of such notice. This is the only exception to the rule that the tenant may not be evicted during the term of the lease.
These provisions expire on December 31, 2012.
Click here to read more provisions outlined under Title VII, Protecting Tenants at Foreclosure Act of 2009.
Little Unknown Facts About Short Sales
These two videos tell the story of why the banks seem to be dragging their feet. It’s not just incompetence and that they are overwhelmed. Some banks are betting with tax payer money that certain number of properties will foreclose and the banks will make more money that way because these mortgages are insured by the FDIC, with our money.
http://www.thinkbigworksmall.com/mypage/player/tbws/23088/870776
http://www.youtube.com/watch?v=vxyRFSYe7ws&feature=player_embedded
This must be what the Obama Administration calls “Change you can believe in.”
Short sale has disadvantages too
While a short sale will save you from foreclosure, it will also have a negative effect on your credit score, frequently lowering it by as much as 200 points. This can be overcome more quickly than the black mark of a foreclosure, especially if you manage to retain one or two credit cards and keep them current. Perhaps equally distressing, the Internal Revenue Service frequently deemed the difference between the mortgage balance and the amount realized from the short sale to be taxable as income despite the fact that the debtor never saw a dime of it. There is new federal legislation called the Mortgage Forgiveness Debt Relief Act 0f 2007 that just went into effect on January 1st, 2008. The new act essentially eliminates this problem.
Almost any option is better than foreclosure
Simply stated, do everything you can before foreclosure occurs and do it as quickly as humanly possible. Don’t sit back and keep thinking, “What can I do?” Instead, consider that short sale and check with your lender before your options become more limited.
The One Best Tip I Can Give You: Don’t Do This Alone
I successfully short sold my house, and the single biggest reason was my real estate agent. Having someone who could work on my behalf was incredible. Facing foreclosure is a scary thing, I know, I was about a month away from losing my home before I got my short sale done.
Don’t just get any real estate agent to help you! My agent had lots of short sale experience, and it made all the difference. He knew who to talk to, when to talk to them, and how to handle all the paperwork to get the deal done.
You Need An Experienced Short Sale Agent!
Foreclosure Vs. Short Sale Homeowner Consequences
Issue Foreclosure Successful Short Sale Future Fannie Mae Loan – Primary Residence
(effective May 21, 2008)A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years. A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years. Future Fannie Mae Loan – Non Primary
(effective May 21, 2008)An Investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years. An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years. Future Loan with any Mortgage Company On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” this will affect future rates. There is no similar declaration or question regarding a short sale. Credit Score Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years. In some cases only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. In some states default can be reported as a foreclosures however the time a short sale instead of a foreclosure will affect a borrow is much less. A short sale’s affect can be a brief as 12 to 18 months. Credit History Foreclosure will remain as a public record on a person’s credit history for 10 years or more. A Short Sale is not reported on a persons credit history. There is no specific reporting item for ’short sale’. In most cases a loan is typically reported ‘paid in full, settled’ or ‘paid as negotiated’. Security Clearances Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance in almost all cases clearance will be revoked and position will be terminated. A Short Sale on its own does not challenge most security clearances. Current Employment Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediate reassignment or termination. A short sale is not reported on a credit report and is therefore not a challenge to employment. Future Employment Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment. A short sale is not reported on a credit report and is therefore not a challenge to employment. Deficiency Judgment In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment. In some successful short sales it is possible to convince the lender to give up the right to pursuit a deficiency judgment against the homeowner. Deficiency Judgment (amount) In a foreclosure the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment. In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency. Take action and make an appointment with us today and get yourself started on the path to financial recovery. Click here to download a complimentary report on Foreclosure Vs. Short Sale Homeowner Consequences.
Our team has specialized training on helping homeowners who may be facing foreclosure. Please contact us today for a no cost confidential consultation.
We can be reached at: 801-205-3500.
If you or someone you know is looking at buying or selling distressed property…rely on the experts, Utah Team – The Distressed Property Experts!
Note: The information provided is for informational purposes. No legal advise is given or implied. Please check with a qualified attorney in your area.
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Short Sales In Utah
Learn the Truth About Short Sales and Pre-Foreclosure
What is a short sale? A short sale is a sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan. This page offers information about the basics of short sales and advice.
Short Sale Advantages
Short sales appear on your credit report as "pre-foreclosure in redemption", not as "debt discharged due to foreclosure"
Less impact on your credit score
All mortgage debt is fully discharged
Source: Dual upside to foreclosure alternative, (The Early Show (CBS), June 21, 2007).What is a CDPE?
A Certified Distressed Property Expert® is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales.
The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. The developers of the CDPE Designation believe that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools needed to help homeowners find the best solution for their situation. Often, when other options have been exhausted, CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale.
While enduring financial difficulties is challenging for any family, the process of finding a qualified real estate professional should not be. Selecting an agent with the CDPE Designation ensures you are dealing with a professional trained to address your specific needs. For more information, contact us!
CDPEs don’t merely assist in selling properties, they serve and help save their clients in need.
Chances are, you or someone you know in the Salt Lake Metropolitan area are facing the possibility of foreclosure. But you need to understand that you are not alone.
Today, 1 out of every 10 homeowners in America is behind on mortgage payments. These are tough and frustrating times. Now more than ever, it's important to identify your options. Foreclosure can be avoided, your credit can be saved, and your financial future can be salvaged.
Through my 25 Years Plus handling distressed properties along the Greater Wasatch front area, I've found that homeowners today have more questions than answers about their circumstances. The situation with Pre-Foreclosure and Short sales is very dynamic and is changing constantly. I have created this site to help you understand the possible solutions to foreclosure, as well as provide a detailed explanation of short sales, which may be the best course of action for some homeowners.
You may also have noticed that I'm offering you a FREE Report to explain your options and help you decide on a course of action. The idea of losing a home can be overwhelming, and I feel it is vital for you to have all the facts necessary to make an informed decision.
As an agent with the CDPE® Designation, I have a strong and unique appreciation of the factors affecting the
market, and know that there are options available to you.
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Martin & Laurie Gale - CDPE, REO, SHORT SALE AND FORECLOSURE TEAM 1-877-898-9502 Toll Free RE/MAX METRO Salt Lake City, Utah www.UtahTeam.com - Saving Families From Foreclosure
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