Frequently Asked Questions - Utah Home Foreclosures
What is a short sale?
Within our context, a short sale is the sale of a
What is a Pre-foreclosure
A Pre-Foreclosure sale takes place after the formal foreclosure proceedings have started but before the foreclosure auction and the
Can anyone do a short sale?
In
Why do a short sale?
If you owe more on your
Does it matter what type of loan I have?
A short sale or pre-foreclosure sale can be attempted on any loan but each type of loan is handled differently.
What is a "Notice of Default" or "NoD"?
A "Notice of Default" is a document that is recorded with the county recorder's office by a trustee and formally starts the
What is a "Notice of Trustees
A "Notice of Trustee´s Sale" is a document that is recorded with the county recorder's office and placed on the property which states the date time and location that the property will be put up for auction.
How much will a Short Sale cost me?
Usually there will be no out-of-pocket cost with a
How much will a Pre-Foreclosure sale cost me?
Generally you will need to pay a commission along with your own closing costs.
I have a
You could, but you would want to make sure they have experience with these types of sales. Pre-foreclosure and Short sales are difficult and complex and to be done "right" will require more experience and understanding than a normal Realtor would have. Would you use a family physician if you needed heart surgery? Just make sure that you are in good hands.
What are the repercussions of doing a short sale?
You may receive a 1099 or a deficiency judgment from your lender for the difference between the amount owed and the amount paid on the loan. This is not always the case and depends on the lender and the situation. Also each lender will report to the credit bureaus the status of the loan. This could be a negative mark on your credit. Our goal is to negotiate with your lender for a release of their lien as payment in full without them seeking a deficiency judgment. It is important that when dealing with a short sale you are working with a competent professional that will aggressively negotiate the best possible scenario for you.
Can I do a short sale if I have already filed Bankruptcy?
Yes, it takes a little longer and is more complex but we are very experienced in working with
What is a deficiency judgment?
A judgment filed against the borrower for the difference between the amount owed on the home and the amount paid to the lender. Example: You owe $100,000 on your
How long does a short sale take?
There is no specific time frame since every situation is different. But generally you can expect it to take a minimum of two to three months and as long as a year.
Do I get any money back from a short sale?
Usually the answer is no. If a lender is taking less than the amount owed to them, they will make sure that you do not get anything from the sale. If you have an FHA loan and do not have any other liens or judgments against your home you may qualify to receive up to $1000 from the sale.