Park City Utah Short Sales
This page is devoted to information on Park City Utah Short Sales. These listings of Park City and Deer Valley Short Sales include houses, condos, and lots updated daily and can include photographs, detailed descriptions, maps, street view and virtual tours of the properties for sale. The lists may include Park City short sales where the seller/owner has accepted an offer but is still waiting for bank review and approval. With a challenging real estate market comes tremendous opportunity for exceptional deals. Read more on short sales
Park City Short Sales - MLS Listings
Call 435-901-2781 with a Park City Short Sale property address or MLS number to inquire about any offers pending third party review and what this means.
Park City MLS - Short Sale Homes
Park City MLS - Short Sale Condos
Park City MLS - Short Sale Lots
If you are looking for foreclosures instead of short sales visit our Park City foreclosures page. It is updated daily with bank owned real estate in Park City, Utah and the surrounding areas.
Facts on Short Sales
A short sale occurs when the proceeds from a real estate sale are insufficient to cover the mortgage or balance owned on the property. In a short sale transaction the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner due to an economic or financial hardship on the part of the borrower. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the dept. The owner can not sell the property unless the creditors ("Third Parties") agree to accept a payment that is less for "short" of the amounts actually owed to those Third Parties. This negotiation can take a long time to accomplish. In many cases it takes months to negotiate a short sale. Many Park City short sales do not get approved or fall through for a variety of reasons. Profitable purchases can be made in Park City, Utah real estate if you have time and are willing to be patient.
Why are Park City Short Sales rising?
Due to the recent national economic crisis, including rising unemployment, and drops in home prices, the number of short sales is increasing. Since a short sale generally costs the lender less than a foreclosure, it can be a viable way for a lender to minimize its losses. A short sale can also be the best option for a homeowner who is "upside down" on mortgages because a short sale may not hurt their credit history as much as a foreclosure. As a result, homeowners may qualify for another mortgage sooner once they get back on their feet financially.
Stringent Qualifications
Park City owners may be pushed into considering listing their home as a short sale when they do not qualify for a short sale. Sellers must prove a hardship and submit evidence of the hardship to the lender for approval.
Challenges for Park City Short Sales
The increase in the number of short sales, and the short sales process itself present a number of challenges. Below are some of these challenges that Park City buyers should be aware of.
Limited Experience and lack of a uniform process and application
Many realtors® are new to the short sales process, a difficulty which is compounded by many lenders' lack of sufficient and experienced staff to process short sales. Most servicers are under-staffed and still not adequately trained, making negotiation a short sale particulary difficult. Until HAFA guidelines were established, both short-sale documents and processess were lender=specific, which maes it hard and time consuming to facilitate these transactions.
No Binding Contract without Third Party Approval
A Short Sale requires the written approval of the Third Parties. The definition of third parties may include mortgage insurers, bankruptcy trustees, all lien holders such as second mortgages, mechanic liens, federal, state and local taxing authorities. When more than one lien holder is involved, the negotiations are much more difficult. Second lien holders often hold up the transaction to exert the largest possible payment in exchange for releasing their lien, even though in foreclosure they will get nothing. As a result many short sale transaction members complain of unresponsive lenders; lost documents that require multiple submissions, inaccurate or unrealistic home value assessments, and long processing delays, which cause buyer to walk away.
The owner of the property, and any interested buyer, are advised that even if they reach an agreement between themselves for the purchase and sale of the property, that agreement will not be binding until the "Third Parties" approve the terms of the Short Sale. In some cases a buyer may be in default and to entice a buyer the home is listed at a lower price than the bank will accept. Most banks will NOT start the approval process for a short sale until an offer is in hand and will not pre-approve an acceptable price for a short sale up front.
Third Party may Reject or Make Changes to the Proposed Short Sale Conditions
Based on the obvious financial loss, Third Parties will often reject a proposed Short Sale. Lenders reserve the right to renegotiate the terms of the short sale even after the first response. If the market changes, new laws pass or new information crosses the lender's desk, the lender can attempt to change the terms of the contract. I like to tell my clients, every "rule" you thought you knew about real estate, throw out the window when working with a bank, most of them do not apply.
There Will Be Delay in Response from the Third Parties
The owner and the interested buyer should be prepared for significant delay in receiving any response from the third parties. Depending on if and when a Notice of Default (NOD) was filed, the lender's back-log of short sales to approve and process, While we think the bank would want to get the sale done and off their books, it rarely happens that way. It could take anywhere from two weeks to four or six months to get a response from third parties on a real estate purchase agreement. In addition, if two lenders are involved because there are two loans secured to the property, it could take longer to satisfy the demands of the second lender. In average only 50% to 60% of short sale listings ever get to a closing.
Third Parties Have the Right to Encourage Additional Offers
As a condition of considering any proposed Short Sale, the Third Parties usually require that the owner keep the property on the market, even after the owner and the interested buyer have agreed to the terms of a sale in writing.
Lose Control of Transaction
If you need to close escrow by a specific date, lots of luck with that. A short sale closing process takes an indefinite amount of time. The seller's lender calls the shots, not the buyer nor the buyer's lender. If you are trying to close escrow concurrently with the sale of your home, it is highly unlikely to happen.
The above is meant as informative information and does not represent all facts of Short Sales. There are great variations between each bank; some short sales can be very easy and quick while others are difficult and lengthy. There are some great deals to be made in Short Sales. It's important when considering a short sale purchase that you have a qualified realtor assisting you that understands the process, what questions to ask up front from the seller in order to save you a great deal of time and money.
Cindy has helped sellers and buyers with short sale transactions. Email Cindy Wallace to discuss whether a short sale opportunity in Park City, Deer Valley or the outlining areas will work for you. You may also call Cindy at 435-901-2781.