| The process of the bank taking ownership of a home from its default owner is called 'foreclosure.' In Utah, this process can take seven or more months.
The term 'foreclosure' can mean several different things, depending upon what stage the foreclosure is in A home is being foreclosed on is in pre foreclosure. This can also be called a 'short sale.'
The short sale is a popular option for a distressed property owner with little to no equity in their property. This is called 'upside-down' in mortgage terms.
The short sale can a true win-win situation. Here is how it works. A REALTORŪ not only markets the home, but also negotiates with the lienholder or bank (ever wonder who's the third party?) to accept full payment for less than what is owed on the property. The bank is happy because they don't have to pay a lawyer and wait months and months to foreclose. The home owner is happy because they are out of their home with their credit. The buyer is happy because they got a great deal on a property.
In theory, 'short' means the bank comes up short on what is owed on the property. In reality, the bank never loses. They have ways to collect what is owed. Have you ever heard of private mortgage insurance or PMI?
Here are a couple of short sale tips. Seller, if the bank does not feel they received enough money from the short sale, they may come after you with a non secured financial judgment. In other words, the bank never loses. For the buyer, the more lien holders on title, the less likely the short sale will happen. Remember, everyone on title must be in agreement or the foreclosure continues as scheduled. And for everyone, you have to be patient.
I'm ready to answer any question you might have about any of these listings. Call or email now!
Gary Pryor
"Your Home is my Priority!"
Altius Realty
Email: priority@ListingUtah.com
801-221-9860
|
