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If you bought your home during the peak of the Real Estate bubble and you are now experiencing a genuine hardship in your life due to loss of income, illness, relocation, divorce etc. you may be struggling with the negative equity in your home and could be facing foreclosure as a result.

The rules, regulations and procedures related to short sales are constantly changing. We make sure that we have the latest information and updates possible and our team of Short Sale experts is on call to make sure that your questions get answered. Weather you chat with us live, online, send us an email, or just call us directly, take the time to find out all of your options!

If you or someone you know are among the millions of homeowners falling behind on their mortgage because of hardships such as high debt, job loss, divorce, illness or an unmanageable payment, there are options,

We can help. 801-554-3743


Frequently Asked Questions

What is a short sale?

In the most simple terms, a short sale is when the lender agrees to accept less than what is owed on the property. If a borrower is unable to pay their mortgage and can not afford to stay in the home, a short sale is an alternative to foreclosure. Example: A lender is owed $200,000 on a property which is only worth $175,000. The borrower is behind and can no longer afford payments due to job loss, death, divorce Etc... The lender agrees accept a short payoff for $175,000 and the borrower is released from further payments and or obligation on the mortgage.

Why do a short sale?

 If you can no longer afford to pay your mortgage and your home is not worth what is owed, doing a short sale is a much better alternative than letting the lender foreclose on the property. This allows you to avoid the damage of a foreclosure on your record for 7-10 years.  A short sale is not nearly as damaging to your credit as a foreclosure and in most instances the lender will forgive the loss with no further consequence to the borrower. Some homeowners qualify for the HAFA program which also gives the borrower protection from a deficiency judgment and up to $3,000 relocation assistance. Contact me right away to find out if you qualify.

Why would the bank except a short sale?

There are a number of reasons a lender wants to agree to a short sale. There are a number of costs that occur when taking a property back by foreclosure (attorney fees, property management, etc.). It will generally cost the lender more money to take the home back through foreclosure then it will to accept a short sale, provided the offer is within an acceptable range of the lenders Appraisal. In some cases, the banks have also been given federal incentives to accept short sales rather than pursue foreclosure.

Can i get money back from doing a short sale?

Generally not. The lender will usually not allow the borrower to receive any of the proceeds from a short sale. They are entitled to any remaining escrow and impounds as well. However, 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 a $1000 from proceeds of the sale. Also, homeowners who qualify for the HAFA alternative to foreclosure can qualify for up to $3,000 in relocation assistance.

What are the consequences of doing a short sale?

After a short sale, the lender will generally issue a 1099c for the deficiency. This allows them to write off the amount of the short payoff. However, the Mortgage Forgiveness Debt Relief Act of 2007 allows the borrower to be declared insolvent of this gain so that it does not count towards your income. For more information on the tax implications of doing a short sale, visit our education center for links to the IRS publication which details the IRS’ rules relating to short sales and foreclosures.  Also, your lender may report the short sale as an account that is "settled, but paid less than in full" However, this has a minimal effect on your credit score in comparison to a foreclosure.

What is a deficiency judgement?

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 Utah home and your lender agrees to release their lien for $90,000. You could be liable for a $10,000 deficiency. Also, if you owe $100,000 and your Utah home is foreclosed on and sold at auction for $90,000, you could be liable for a $10,000 deficiency. It is important to remember that you can be held liable for a deficiency judgment regardless of weather a home is short sold or is foreclosed on.

What is a notice of default (NOD)?

A "Notice of Default" is a document that is recorded with the county recorder's office by a trustee and formally starts the Utah foreclosure process. A copy of the "Notice of Default" is usually mailed out the defaulting party. In Utah a Notice of Default can be filed by the lender within 90 days off the account going delinquent.

What is a notice of trustee sale?

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. (Foreclosure date). The lender can set a trustees sale 90 days after the Notice of Default is filed. The lender must serve notice of the trustees sale 3-4 weeks prior to the sale taking place.

How much will a short sale cost me?

99% of the time, there are no costs to you to do a short sale in Utah, the lender will generally pay for all closing costs and commissions.

The Huntington Real Estate Group at Equity Real Estate
Marc Huntington
1218 East 7800 South #150
Sandy, UT 84094

Based on information from the Wasatch Front Regional Multiple Listing Service, Inc. as of April 23, 2019. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or the MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.
The multiple listing information is provided by Wasatch Front Regional Multiple Listing Service, Inc. from a copyrighted compilation of listings. The compilation of listings and each individual listing are © 2019 Wasatch Front Regional Multiple Listing Service, Inc., All Rights Reserved. The information provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Conspicuous display of the following: Information deemed reliable but not guaranteed accurate. Buyer to verify all information.