Utah Short Sale
A short sale will usually occur when a homeowner needs to sell their residence, however the total amount due is more than what a home can sell for. If the homeowner does not have the assets to make up the difference they will need to work with the creditor and ask them to take less than the owed amount. A short sale is not always an easy talk choosing an Utah short sale Realtor will be a good first step.
The homeowner owes $225,000 on their first mortgage, however they are only able to sell the property for $200,000. There is a $25,000 shortage in the amount that the homeowner is expected to pay the creditor. The homeowner will then contact the creditor and let them know they are unable to sell the property for enough to pay the mortgage. The lender agrees to forgive the $25,000 and accept the short sale. The homeowner is now released of any further payments and obligation to pay $25,000 shortage.
You may need to get an approval from more than one lender if you have a second mortgage or Home Equity Line of Credit (HELOC). You will see why in the next example:
This time homeowner owes $225,000 on their first mortgage and $25,000 on a HELOC, however they are only able to sell the property for $200,000. This time there are two lenders that are being shorted money with the sale of the property. The homeowner will now need to contact and convince two lenders to accept less than what they are owed.
Selling short can get very complicated. The lender(s) will have to be convinced that it is in the lenders best interest to take less than what they are owed. You can find out more in the article “How to write a hard ship letter” and “Utah Short Sale Scams“