The term Short Sale came from the fact that the Lender’s payoff is coming up “short”. Short Sale happens when a Lender allow to the sale of a property that is less than the amount owed on a mortgage.
When loans have mortgage insurance, properties being purchased as short sales can often represent excellent deals. The actual purchase transaction is more complicated, and often takes more time, but Salt Lake Short Sales are hot items at the moment. Even if you’re not looking for them, you will likely encounter Salt Lake short sales as nearly 1 in every four listed properties is a short sale.
Qualifying For A Short Sale in Salt Lake City
With the number of underwater homes in Salt Lake, many potential sellers face the realities of selling as a short sale. Not all people can qualify for short sales. In order to qualify, the person must meet the specific banks requirements, and complete a short sale packet.
A short sale package includes: Purchase and Sale Agreement (from Realtor), Addendum to Purchase (from Realtor), Authorization to Release Information, Two Years FULL Tax Returns , Two Months Bank Statements (Most recent), Last Two Pay Stubs, Fill Out Financial Worksheet, A Handwritten Hardship Letter, If FHA, Form 90036 and Homeownership Counselling Certificate.
The rest of the seller’s debt is forgiven with short sale. Rather than suffer the lengthy and expensive foreclosure process, a homeowner agrees to a short sale though the sale of your Salt Lake City home, for instance is less than the owner owes on the mortgage.
Foreclosure is definitely not the only option. A short sale is a better alternative. The Home buyer will get the home in a bargain price. The Seller will get out of the mortgage liability and will definitely not face bankruptcy. On the hand, the lender will not be facing the arduous protracted process of foreclosure even if he agreed to a loss from accepting a short sale.
Short sale is a better option to foreclosure; however, waiting for the lender to agree on it can be a lengthy process. But if you’re on the way to short sale your Homes for Sale in Salt Lake City Utah, Realtors advise that you seek help from a real estate agent short sale expert. Here’s what they say:
1. Make sure that your Lender agrees in writing to forgive all debts with the short sale.
2. Make sure how the short sale will be reported to your credit report. A short sale can give you a negative credit report although the report will just say as ‘settled for less than the full balance,’.
3. Ensure that you ask your agent about the tax repercussions of short sales. So, if your Home in Salt Lake City was agreed to a short sale for $30,000 less, then a 1099 for $30,000 will be issued by your lender and you would have to pay taxes on.
Short sale is a win-win situation according to Real Estate agents. Foreclosure doesn’t have any credit advantage over Short Sale yet, the latter is an advantage over the former if you ever decide to buy another home.
Featured Salt Lake City Short Sales
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