Utah Short Sales

Mortgage lenders and real estate agents are quick to push a homeowner who is behind on their payments into choosing a short sale, instead of letting their home go into foreclosure. In a short sale, the house owner agrees to sell the house to a potential buyer for less than the amount owed to the mortgage company. Before the sale the homeowner must communicate and ask them for a compromise to accept the amount offered, rather than taking the house into foreclosure. It is obvious that only two parties really come out ahead on the deal, neither of which are the homeowner. The real estate agent will get the commission on the sale and the banker lowers the chance of owning a property that might be difficult to sell in a slow real estate market. The homeowner, on the other hand, loses the house with no equity in the bank. But might avoid having a foreclose on their credit report which might make it difficult for them to qualify again quickly for another home loan.

Be very careful before you negotiate a short sale with your mortgage lender. You may be required to sign a promissory note to cover the difference between the purchase price and the amount owed on the original mortgage. In addition, there are serious 1099 tax liabilities for any amount of the loan that the bank agrees to forgive.

If you are not sure that a short sale is in your best interest, get the straight facts about mortgage default. The Law Office of Paul Benson is recognized as one of Utah’s prominent debt relief and bankruptcy law firms. During an initial free consultation, we will explain the rules and procedures for a successful short sale and help you understand your options to help you save your house from foreclosure. If you decide that a short sale is your best solution, we can handle all documentation, procedures and discussions with the bank. We know the strategies that work and the processes that will lead to a cost-effective solution to your foreclosure problem.