"Short Sale Distress situations"

What if you owe more than your house is worth?

Are you facing foreclosure?

Have you been in a loan modification and missed payments?

A short sale may be a viable option for you.

Suppose “A” owns a property that is worth less than what is owed.  “A” still owes $200,000 on the home.  “B” is an investor that would like to purchase the property for $120,000.  Once “B” negociates the short sale with A’s lender and then closes with “A”, “B” will then do a double closing with “C”, the end Buyer for $150,000.  “B” will make a $30,000 profit.  Are there any problems here?  What legal issues should you be aware of?

To get the answers to these questions please contact your legal counsel at the Utah Association of Realtors.

To get the rules and information on short sales, download the HAFA document below.

HAFA Information
HAFA short sale rules may help sellers
Microsoft Word document [15.8 KB]

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