Tuesday, August 23, 2011

Utah Short Sales

According to RealtyTrac 3 million U.S. homes will be repossessed by lenders this year due to unemployment and depressed home values. In today's economic climate—you cannot keep up with your mortgage payments or need to move for some other reason, and you still owe more on your home than its current valuation, you may want to consider a Utah short sale. A short sale occurs when you sell your home for less than the total amount owed on all mortgages, and the mortgage holders agree to accept the sales proceeds and write off the remaining debt.
A Utah short sale may be right for you when:

  • Your home was overpriced when you originally purchased it

  • You have little or no equity in your house

  • Housing prices have dropped sharply since the home was purchased

  • You have to sell quickly and receive only low offers

  • You are threatened with foreclosure

Advantages of Short Sales in Utah
A portion of your debt is forgiven and you avoid foreclosure with short sale. Compared to a foreclosure, which remains on your record for many years, a short sale does less damage to your credit. But if you were late or missed mortgage payments, those will still appear as negative events on your credit report.

Home buyers who purchase Utah foreclosures listings or short sales have the advantage of getting property at discounted prices. However, when housing prices decline—as has recently been the case here in Utah and around the nation—or home sales are slow in the neighborhood, buyers may have to wait several years before they can realize gains on their investments.
Although lenders lose money when agreeing to a Utah short sale, they are more likely to approve the sale if foreclosure proceedings would be more expensive than the forgiven debt. Foreclosure proceedings give lenders full ownership of a property, and most lenders do not want to own Utah foreclosure homes. They would prefer to forgive debt rather than pay maintenance and real estate agent fees while trying to sell Utah foreclosure homes themselves.

It is important to consult with an attorney or financial advisor to guide you through a Utah short sale in order to make the right decisions.

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