What is a Utah Short Sale?

 
A Utah Short Sale occurs when a lender accepts a sales price on your property although it is less than what you owe on your property.  Because so many Utah homes are upside down, banks are willing to accept a reduced amount for the mortgage rather than deal with the formalities of foreclosing on a property.  Also, a short sale can be an excellent way to avoid foreclosure, as long as it is done properly by a qualified Utah attorney. The lender agrees to take a loss on the property and writes off the difference between what was owed on the property and the final sales price.  Sometimes, however, the Utah lender may retain its right to seek a deficiency judgment against a homeowner.

Why do a short sale?
Short Sales benefit Utah homeowners by stopping foreclosure and may prevent the lender from suing for the difference between what is owed on the home and what the home was sold for at auction.

Also, a short sale is a voluntary agreement with the Utah bank, which results in stopping the foreclosure and the homeowners credit report does not report as a FORECLOSURE. This will help when you want to qualify for a new property.

In addition, a Utah Short Sale gives peace of mind to the property owner because the owner knows when the sale will close, giving the homeowner time to vacate the property and no risk that a sheriff will evict the delinquent homeowner.