Salt Lake Short Sales Explained

SHORT SALE: A short sale is a special transaction that allows you to sell your home - even when your mortgage debt is higher than the value of your home.

Most people who are going into foreclosure may qualify for a Short Sale.

Before we talk about what the requirements are, I want to share with you the benefits of doing a Short Sale.

- First of all, you will avoid Foreclosure as well as the negative effects that it has on your credit. If you work with the right Short Sale Agent (you can find one in your area by calling 760-744-0400) your credit will show Paid in Full once the transaction has been completed.

- With the proper exit strategy, you can be back on your feet again and ready to purchase a new home within 6-12 months, if you desire and your situation permits.

The following conditions apply in order to qualify for a Short Sale transaction.

*You must have a valid reason why you are going into foreclosure. You can not just say, "I can afford the house, but I don't want it anymore". If that is the case, the bank will laugh at your case as they proceed to Foreclose on your property.

*Next, you must be in a position where a traditional sale is not an option (in other words, you have no equity and you don't have the cash to pay the difference if you were to sell your home for less than what you owe).

*Finally, an expert Short Sale Agent must qualify your lender before they move forward. Most 'Realtors', Investors and Real Estate Agents do not understand this step. That is one of the reasons they have such low success rates when it comes to closing a Short Sale. Investors have a 10% success rate. Most other so called 'Real Estate Experts' don't do much better. Because a properly trained Short Sale Agent knows how to qualify you for a Short Sale transaction, the success rate is over 80%.

So, before hiring just any 'Agent' to assist you in a Short Sale, make sure they are qualified and understand all the work that is required to see you through to the end.

The actual Short Sale process can take as little as 3 weeks or as long as 4 months. In most cases, 60-90 phone calls back and forth between the lender are required. The proper negotiation skills and documentation are required in order to have the correct presentation of the 'packet'. The lender must be able quickly see that you are qualified for a Short Sale. What is in the packet? That is a great question, but you will not find the answer floating around the internet. That is just one of the 3 main 'tools' or 'tricks' that sets a Short Sale Expert apart from the rest of the "Real Estate Professionals".

In closing, be smart and make sure that you ask many questions before trusting your future, your credit and your financial situation with a self-proclaimed 'Expert' that may have just learned about Short Sales from a Title or Escrow Company, a Real Estate Seminar, or their Broker.

If you have more questions or would like help please fill out the form below or call us direct at 801-467-7007.

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