The term “Short Sale” is used in the real estate business to describe a situation where there is more debt owing against a property than the property is worth. In other words, the owner can’t sell the property unless the creditors (“Third Parties”) agree to accept a payment that is less (or “short”) of the amounts actually owed to those Third Parties. The Third Parties are usually mortgage lenders, mortgage insurers, bankruptcy trustees, and federal, state and local taxing authorities (such as the IRS or State Tax Commission).

The words “short sale” have come to make some people cringe. If you have any personal experience with short sales, or if you have heard some of the horror stories you know that they are anything but short. Most short sales take any were from four to six months, and at times can be frustrating but before you discount short sales they may just be a good option for you.

For people who are in no hurry to move they can be a golden opportunity. For example If you are renting and are on a month to month lease, or if you are moving up and don’t need to sell your current home to get a new one. It may make good sense to buy a short sale home.

Short sales can be found all over Utah even in very nice areas like Daybreak and West Jordan. Some areas like Saratoga Springs and Eagle Mountain near Camp Williams have been hit hard by short sales. If you are willing to purchase a short sale home you may be able to purchase one well below today’s already low market prices. This is especially true if the home is in one of those hard hit areas.

A short sale home can be hard to sell particularly if the home needs some work. If home improvements or home repair doesn’t scare you this can also add to your ability to get a home at a real bargain. This slump in the Real Estate market has created a lot of opportunity. If you are in the market to buy a home a short sale home may just be a good option for you.