The Salt Lake Board of REALTORS® reported today that one out of every seven homes listed for sale or under contract in Salt Lake County is a short sale, a transaction in which the proceeds fall short of what is on the mortgage.
As of June 2, there were 7,643 homes and condominiums in Salt Lake County actively listed for sale or under contract. Of that number, roughly 15 percent (1,134 properties)were listed as a short sale (pending price approval or price approved).
The number of short sales today is about double from what it was a year ago. “Short sales can offer good deals for buyers, but it can take several months for a bank approve a short sale,” said Ryan Kirkham, president of the Salt Lake Board of REALTORS®. “Buyers interested in purchasing a home in a short sale should do their homework by investigating the financial situation of the seller. Make sure that the seller and his/her agent have already talked with the lender. Ultimately, a short sale must be approved by the lender.”According to a recent story in the Washington Post, “Lenders aren't in the business of accepting less than they are owed, and their paperwork machinery isn't even set up to work that way efficiently. Their approval of a short sale is always slow in coming –if it ever comes at all. You need to find out if the bank even has a clue that the seller is trying for such a deal.”
"President Barack Obama last month announced incentives to encourage short sales his new Foreclosure Alternative Program. Borrowers who qualify can receive up to $1,500 to help with relocation expenses and up to $1,000 toward the cost of paying junior lien holders to release their liens. In addition, lenders or servicers are eligible for $1,000 for the successful completion of a short sale or deed‐in‐lieu of foreclosure. This program is in effect through 2012.
As of June 2, there were 7,643 homes and condominiums in Salt Lake County actively listed for sale or under contract. Of that number, roughly 15 percent (1,134 properties)were listed as a short sale (pending price approval or price approved).
The number of short sales today is about double from what it was a year ago. “Short sales can offer good deals for buyers, but it can take several months for a bank approve a short sale,” said Ryan Kirkham, president of the Salt Lake Board of REALTORS®. “Buyers interested in purchasing a home in a short sale should do their homework by investigating the financial situation of the seller. Make sure that the seller and his/her agent have already talked with the lender. Ultimately, a short sale must be approved by the lender.”According to a recent story in the Washington Post, “Lenders aren't in the business of accepting less than they are owed, and their paperwork machinery isn't even set up to work that way efficiently. Their approval of a short sale is always slow in coming –if it ever comes at all. You need to find out if the bank even has a clue that the seller is trying for such a deal.”
"President Barack Obama last month announced incentives to encourage short sales his new Foreclosure Alternative Program. Borrowers who qualify can receive up to $1,500 to help with relocation expenses and up to $1,000 toward the cost of paying junior lien holders to release their liens. In addition, lenders or servicers are eligible for $1,000 for the successful completion of a short sale or deed‐in‐lieu of foreclosure. This program is in effect through 2012.
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