Logan

There are many listings in Logan, Utah that are available for short sale purchase. This is obviously due to the economy and the state of the real estate market. A short sale is definitely beneficial for a buyer and can be for the seller and the lender as well.

A short sale in simple terms is when a house owner is in default status on their loan payment and to avoid foreclosure proceedings, the lender “forgives” a portion of the debt and agrees to have the home sold for less then the amount of the loan. The process may seem simple enough but there are many requirements and stipulations in order for a short sale to actually take place.

The owner of the home must first provide proof of a financial hardship. It is recommended that owner (borrower) complete a Freddie Mac Short Sale Hardship letter as part of proving the financial hardship. Financial hardship can be caused and proven by one of the following: loss of employment, death, injury or serious illness.

One of the advantages for the borrower of a short sale is that if successful their credit rating will not be damaged and it is also in the bank’s (lenders) best interest to proceed with a short sale, rather than a foreclosure. The cost to the lender in foreclosing on a home is far greater than “forgiving” a portion of the debt and settling for the short sale profit. While not the best outcome for anyone, short sales definitely have their rewards.