How does a short sale work in Salt Lake? What is the process?

First of all, a Short Sale is not for everyone. If you have a valid reason why you can't make your payments and you have no equity to sell your home for what you owe, then you are a good candidate for a short sale.

The process can seem long and painful if you go into the transaction without knowing what to expect. If you know what to expect, then it is not too bad and actually can help you in quite a few ways, (besides saving your credit from foreclosure and/or a deficiency judgment).

If you are unsure as to what a Short Sale is, click here to read a previously written article before you contiune reading.

Are you back? Great, now let's look at the process and an estimated timeline of an average Short Sale.

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In this scenario, let's assume the person's name is John and he has missed two months of his mortgage payments and he sees no way to come up with the money to catch up on his payments.

First week - John decides he needs to call someone for help regarding his situation. He meets with a Short Sale expert and authorizes 'The Expert' to help him out.

Second week - The Expert has a professional inspector go through John's house and make a list of repairs and take pictures of the home.

Third week -The Expert will have received various offers to buy John's home and he will begin to present the offers to the bank in order to begin negotiations.

Fourth week - John is about 3 months behind at this time and the bank will soon be filing a NOD (notice od default) which means that a Foreclosure sale will be scheduled after 3 more months of being in default.

Between 2nd and 4th month - Usually at some time in this time period, a Short Sale approval will be given by the bank. The new buyer will be given between 10 and 30 days to perform (arrange their financing and close escrow).

After the Close of Escrow - John will have saved up some money and will now move out of his house and into a new place that he can affrod for the time being, until he feels ready to buy a house again.

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This is obviously a short list with a lot of the details ommitted. In our consultations with our clients, we go over in more detail the process and answer any and all questions.

On top of all that, we also go over 'how' we show your credit as 'paid in full' vs 'paid less than agreed' or 'short sale'.

If you have any questions or need more information, please fill out the form below or call us directly at 801-467-7007.

Copywrite makeforeclosurestop.com 2007. makeforeclosurestop.com is affiliated with Service First Realty Group, Salt Lake City, UT 84105. 801-467-7007.