Why do short sales take so long?

.There is no one real answer to this question. There can be many different reasons why a short sale can take long. I have seen short sales completed in 45 days from beggining to end. I've seen short sales go for 15 months before they sell. The average time for short sale negotiations is from 4 to 6 months. One of the reasons why short sales take long is because some buyers walk away from the deal after the approval letter has been issued. Some of the reasons buyers walk away is because they either found another home during the negotiation process or simply don't qualify for the loan. It takes an experienced agent to know and understand how to locate these buyers and keep them in the game as long as it takes. When the buyer walks away another buyer must be put into place and the file re submitted. If this is to happen more than once, the process continues to lengthen.

Another reason is because the home owner has 2 or more mortgages. If this is the case both mortgages must be negotiated and agree to release the lien at the same time. Again this takes an experienced short sale negotiator to accomplish this. If the first mortgage gives an approval letter and the second is still reviewing the file, The first approval letter may lapse and would have to restart the file all over again. Many banks are starting to get the hang of short sales and are starting to process them a bit faster. Expect to see changes in the near future as far as procedures that institutions must follow to successfully finish a short sale. Bottom line is that if you hire the right agent that has the right people working for him or her, a short sale should not drag out for months. An experienced agent such as us here at Utah Realty Pro have techniques used to speed up the short sale process. Contact us for a free confidential consultation

Home values in Salt Lake continue to decline.

Home sales are up in Salt Lake City due to a few different factors. One of the main factors is that it is favorable for home buyers to buy now due to interest rates being at an all time low. Today they sit in the mid 4%. Another factor is that there are so many deals out there to pick from. about 25% of all the homes on the market are in short sale status. What does that mean for home values? Well, due to the continued increase in short sales in Salt Lake City. Many buyers tend to bid lower on these homes because of the stigma that they carry and also because of the time frame it takes to go through the short sale process. Therefore bringing the purchase price down and directly affecting the value of the homes surrounding the distressed property.

As we continue to see an increase in short sales, We will also continue to see a decrease in home values. If you feel you are at break even point with your home and you need to sell soon. You may want to consider consulting with a professional Realtor before you see your home lose more value than it has already has. A short sale may be your only option if you cant afford to pay the difference between what you owe and what you can sell for. Contact us for a free no obligations consultation.

What is a short sale?

A short sale is pre foreclosed property. The owner of the home has had a hardship of some kind and is unable to keep up with the mortgage payments. The home owner needs to sell, unfotunately like many home owners in Salt Lake City they are upside down on the mortgage and owe more on the note than the home is worth. When this happens they are unable to sell the home for what is owed and needs to sell the home short of the amount due to payoff the mortgage. Most times the home owner does not have the abiliy to pay the difference on what is owed and can not sell. That is when a Short Sale may be the home owners best option.

When conducting a Short Sale, We as agents will list and market the home and negotiate with the banks so that they agree to take Short of what is owed on the note and pay for all the commissions and realtor fees. Therefore not costing the homeowner anything for selling the home and negotiating with the bank. Most times the difference in what was owed and what it sold for is forgiven by the banks. Other insentives to home owners may be available. Each case is different.