Free List of Utah Foreclosures and Short Sales
Foreclosures are happening in Utah at an alarming rate. Utah FORECLOSURES and SHORT SALES are a great way to get a fantastic deal on a home. THEY MUST BE SOLD as Lenders do NOT want to maintain Real Estate assets for any longer than necessary.
If you are interested in purchasing foreclosures or short sales in Utah, we can help by emailing you a daily list of foreclosures and short sale properties. This service will save you a lot of research and running around.
Here's how it works. Every day, assuming there are new foreclosures or short sales available, we will email you a computerized report listing the current Utah Foreclosure properties for sale in your desired price range and location. This list also includes Utah bank owned homes for sale and short sale homes for sale. There is no cost for this information, and absolutely no obligation.
To receive this service, simply tell us what your home search criteria is and who to send the listings to below.
Your privacy is important. Your information will not be shared, sold or exchanged
with anyone outside of the scope of this service.
More About Utah Foreclosures
What's the difference between shortsales, foreclosures and REO's?
Now, than ever before, is one of the best times to get a great deal on a distressed property in Utah. However, it can sometimes be confusing. Sometimes you will see ads that says, "Foreclosed Homes for Sale" or "Home is a Short Sale" or "Bank owned homes for sale". There are many confusing terms out there today regarding "distressed properties". We have heard many people use theses terms incorrectly, so we'd like to take a moment to discuss the different terms used in Real Estate such as Short Sale, Foreclosure, REO, etc. to keep you better educated regarding distressed properties in Utah.
What is a Short Sale?
A short sale happens when the homeowner owes more on their home than it's worth. In order to sell the home, the bank or lender agrees to take less than the full loan payoff for the owner's property. In most cases, the owner is in default and is not making their payments for various reasons.
A Short Sales in most circumstances, is the first step to avoid foreclosure (defined later on). Although the lender(s) will recover less than the total loan amount owed in a short sale, they may prefer this in lieu of foreclosure. The costs of foreclosing on a property in Utah may be more than the bank's loss by taking a short sale. Also, the property may not sell at auction and then the bank would be forced to take it back as an REO (Real Estate Owned) property (also defined later), which then they would have to maintain, list and sell themselves.
Short sales are very complicated and the outcome is never guaranteed. The bank (lender) is not obligated to take a short sale and in most cases the process to get one approved is cumbersome and frustrating for the Buyer, Seller and the Realtors. Many times these requests are not approved by the bank and the property ends up going through foreclosure anyway. Banks are overwhelmed with short sale requests and the approval process can take months. Each bank evaluates every individual request on a case by case basis. Often there is more than one lender involved. Not only do the banks consider the borrower's personal and financial situation, but they also consider an appraisal of the property, market conditions, the banks financial situation, their current portfolio and in many cases have to consult with an outside investor who purchased the loan at some point. Given all of these varying circumstances, you can imagine why this process takes so long. Most buyers do not want to wait out this long process and deal with the uncertainty. If a short sale is approved, it can be below market (depending on the bank appraisal), but by the time it's approved, the market may have further declined and it may not be a great deal after all.
If you are considering selling your home as a short sale, please consult with a CPA and an Attorney first! Realtors ARE NOT qualified to give you the type of information you need to decide if a short sale is right for you. You should also call your lender and see if they have any other options available such as a loan modification. Depending on the types of loan(s) you have and your financial situation, it may or may not be the best option for you.
What is a pre-Foreclosure?
Pre-forclosure simply means that the house hasn't been foreclosed on yet. The house could be on the market as a Short Sale and still be considered a "pre-foreclosure" property. Basically the homeowners are in trouble and likely are in default of the loan. It's just a marketing term to attract attention to the property as being a "distressed sale". Utah Realtors use this term to create interest in possibly purchasing a home below market value. This may or may not be the case. Further research needs to be done on each home to determine the value.
What is a Foreclosure?
When you see an add that says, "Foreclosed Homes For Sale", this really means the homes are bank owned. On the other hand, if the ads says the property is going through foreclosure, present tense, this means the bank is in the process of taking the property back from the owner. Foreclosure is a process, not necessarily a state. It is the process whereby the lender takes possession of the property.
When a home owner fails to make the payments on his/her mortgage, the lender can begin foreclosure proceedings. This is a very specific legal process with set timelines and outcomes that varies by state. In Utah, the minimum amount of time it takes to foreclose on a home is 3 months and 3 weeks. If the bank has followed all the correct legal procedures, they can sell the home at auction after this time period. In a Short Sale situation, the home owner's name is still on title of the property and they are the official owners who are trying to sell the property. In a foreclosure, the lender is given the right to sell the home without the owners permission. If no one buys the home at aucution, the bank can then take possession of the house.
Foreclosures are NOT sold by Realtors. Foreclosure properties are auctioned at a Trustee Sale at the Court House in the County where the property resides. Some foreclosure properties must be paid for in full, with a cashiers check at the time of the auction. Others only require a sizable down payment at the time of the auction with the remaining balance normally due withint 24 - 48 hours so check with the Trustee first before attending an auction. Only seasoned investors should consider this option. When you purchase a home at a Trustee Sale, you could be at risk of various problems that are normally investigated by Realtors and Title Professionals in normal sales transactions. These problems can be serious!!!! Problems such as: Title problems, IRS liens, tenants or owners still occupying the property, and/or structural problems. The price may seem good at auction (priced well below other houses in the neighborhood), but your costs and risks may come after you try to take title and/or possession. Properties that are a good investment are purchased by seasoned investors who find a way to get them before anyone else. Unless you really know what you are doing, this is the most risky way to purchase Utah foreclosure properties!
What is an REO?
REO is a abbreviation for Real Estate Owned properties.
If no one purchases the property at the Trustee Sale, then the home becomes an REO property or a bank owned property. Many times the main reason homes don't sell in a Trustee Sale is because it doesn't work out to be a good investment for a potential real estate investor, but there are great deals that slip through the cracks. Other times the bank simply won't let the property go for the amount investors are willing to pay.
A home that has been "foreclosed" and has become a bank owned property can then be listed by a Realtor who is hired by the bank to market and sell the property. To sell the house as quickly as possible the lender will remove any liens on title, and clear any other issues that may slow down the sale of the property. Generally, lenders are very motivated to sell these properties, as they are in the business of lending money, not owning real estate. REO's tie up their capital reserves and hamper their ability to lend money. Also, the management of these properties can become very costly. This is the best opportunity to find a good deal.
Note: there are many homes out there for sale that are not distressed properties. The owners have a lot of equity, are motivated to sell and have priced their homes to move quickly. Distressed properties are not always the best way to find a great deal.
Preventing Foreclosure on your House
Stop Foreclosure- Save My Home
By Susan M. Keenan ©2007
Even the best of us can get into financial trouble and wind up with an impending foreclosure on our home. Fortunately, a foreclosure doesn’t have to be the only way out of a temporary setback in finances. The other thing that is on the side of the homeowner who is staring foreclosure right in the face is the fact that the government has certain guidelines that need to be followed completely before a foreclosure becomes a reality.
Most homeowners have probably never even thought about foreclosure or how to stop one or what they can do to prevent it in order to save their home. Lots of options and foreclosure help do exist for the homeowner who is looking to stop a foreclosure including loan modification, the refinance of the existing mortgage, or even refinancing all existing loans including car, installment, education, and home equity. Additionally, the homeowner may have the option to utilize either a short sale or a deed in lieu.
Foreclosure help can be as close as your local bank, a finance agency, or an Internet lender. If you want to stop a foreclosure on your home, then you need to look for that help and take advantage of it. Typically, an impending foreclosure must be publicly listed for a specific period before the foreclosure can actually take effect.
The homeowner has that time to make all attempts to stop the foreclosure. The first thing that you want to do is to contact the holder of your deed and notify them that you are, in fact, trying to stop the foreclosure by looking into several options starting with your request to them for a loan modification.
A loan modification can be set up in several ways, and typically involves some level of forbearance. Forbearance involves a delay or postponement to the obligations of the loan. Payments might be postponed.
The lender can grant a temporary hold on the principal amount that is due & collect the interest portion of the payment only. The monthly payments on the interest that is due can be made in full or the amount can be added to the balance of the loan. The second option means that the payments you make once you resume the repayment of the loan are actually larger due to the larger loan balance.
Additionally, quite often, previous unpaid payments are postponed until a later date. However, your lender may require that you pay the interest on those payments or that you make a token of your commitment by paying at least one full mortgage payment. Forbearance policies vary from lender to lender, therefore the terms that you are offered may differ from terms that someone else might be offered.
Additionally, the lender can achieve a loan modification by decreasing the amount of your payments by offering to refinance the mortgage with different terms including an extension on the number of years left to pay or a change in the interest rate that is charged on the balance of the loan. Moreover, the lender may consider adjusting the balance of the loan in certain extreme situations.
The homeowner can simply refinance the loan to acquire lower interest rates if they are available. This will reduce the size of the mortgage payment. Plus, if the homeowner increases the number of years or term on the loan, this will also reduce the amount of the monthly mortgage payments. If a homeowner decides to refinance the loan, this can decrease the payments sufficiently to make them manageable for regular payment. This should enable the homeowner to come to terms with the lender and stop the foreclosure.
All homeowners should understand the following terms when it comes to owning property, but especially so, when it comes to foreclosure or attempts to stop a foreclosure. The deed is the legal document that is given and held as security for the repayment of the loan that was taken to purchase the home. A lien is the legal claim that the lender has against the property for repayment of the loan. A deed in lieu refers to the presentation of the deed in place of the debt obligation.
If all else has failed and no other option exists to stop the foreclosure, the homeowner can offer a deed in lieu of foreclosure to the holder of the mortgage, the mortgagor or the mortgagor can request a short sale. The deed in lieu releases the homeowner from all financial obligations to the mortgagor in return for the homeowner signing over all rights to the home. Additionally, a deed in lieu allows the homeowner to avoid the status of a foreclosure even though he still loses his home.
This is an excellent strategy for future financial dealings. If the homeowner undergoes a foreclosure, this appears on his credit report for several years and works negatively against him. With a deed in lieu of foreclosure, the homeowner can avoid that stigma and all of the ramifications that go along with it.
If the home facing a foreclosure has decreased in value to the point that it is no longer worth the value of the loan, the mortgagor may consider a short sale. A short sale involves selling the property for less than the balance of the outstanding loan.
However, the lender or mortgagor will incur costs with a foreclosure, therefore, a short sale may be the best financial solution for this particular foreclosure. If the home cannot sell on the market for the amount due on the loan due to its depreciation or a decline in the housing market, then the short sale will at least provide a viable option to recoup the majority of the money due to the lender.
If you are facing a foreclosure and want to stop it, take the challenge and look for solutions to your problem. Attempt to refinance your loan. Ask for a loan modification and forbearance. As a last resort, offer a deed in lieu of foreclosure or for a short sale to avoid the stigma of a foreclosure on your credit background.