Are you considering a short sale? This type of home sale can sometimes be the best outcome for homeowners experiencing financial hardship. However, you may encounter obstacles throughout the short sale process that can interrupt your approval of the sale. While these can be difficult, you can overcome them with strategy and legal assistance. Below, we’re discussing what a short sale is and how it can help you, the potential obstacles of a short sale, and how you can successfully complete your short sale in the state of Utah.
What is a short sale?
A short sale is when a homeowner sells their home for less than the total amount of outstanding mortgage debt. The lender will then forgive the remaining debt in exchange for the proceeds. A short sale is often the ideal outcome for those facing foreclosure. This is because the homeowner will be able to leave their house with no outstanding debt. Short sales also have less impact on your credit score than foreclosures do, although both will have ramifications based on the nature of your situation.
What are the main problems with a short sale?
One of the main potential problems with short sales is that they are very complex, and there’s no guaranteed approval once you begin the process. The seller must complete the process and address any potential issues before they can get their approval letter.
If you’re considering foreclosure, don’t let the potential for obstacles stop you from negotiating with your lender. Instead, you can work with an attorney to identify potential obstacles and create a preventative strategy. You can also explore other options to ensure that you have a backup plan in case of denial through the short sale process.
What are the potential obstacles to the short sale process?
Below are some of the most common obstacles sellers face with a short sale:
1. A short sale isn’t guaranteed
It’s important to remember that a short sale is never guaranteed. Even if you compile a convincing case, the lender will have the final say in approval. However, there are several steps that you can take to increase your chances of a short sale approval:
- Assembling proper documentation: Gathering the necessary documents will help you to potentially experience a faster approval process. Be sure that you’re following all necessary guidelines and preferences through this step. You may potentially seek legal assistance to ensure that there aren’t mistakes.
- Finding interested parties: Compiling a pool of high-quality buyers will strengthen your proposal. Choose buyers who can make an offer that’s close to market value. This can help, as lenders will want to recover the most debt possible.
2. Short sales aren’t always fast
Short sales can be quick transactions, taking just a few weeks to approve. However, more often than not, it can take several months to get approved. Delays can be caused for a variety of reasons, including:
- Negotiations: It’s possible that the lender might not accept the first offer that’s presented. They may want to negotiate with the buyer to come to a more competitive deal. Choosing buyers with strong offers can help you to avoid long negotiation periods.
- Mistakes: Mistakes can cost you valuable time and money throughout the short sale process. To mitigate the possibility of mistakes, consider hiring a specialty attorney who can help you to review your paperwork prior to submission. This will help you avoid unnecessary delays caused by negligence.
- Processing times: Sellers need to submit a seller’s package to the lender, which can take 10 days to approve. The lender must also assign a negotiator if they don’t accept your deal. This process can take up to 30 days, or longer if they choose to assign a second negotiator. This can put your approval time at three months or more throughout the short sale process.
While some delays are inevitable, you can generally avoid them if you’re aware of them ahead of time. A skilled attorney can help you to minimize delays and create an attractive seller’s package. This can help you to bypass excessively long negotiation periods.
3. Junior lien holders may reject the short sale
Junior client holders (such as current and previous lenders) must agree to the short sale. Unfortunately, this isn’t always the case, and disagreements may happen. Rejections can cause delays. If this were to happen, creditors would need to negotiate among themselves and come to the buyer with a proposed conclusion.
If junior lien holders can’t come to an agreement on the offer, a second negotiator may be added to the case. This can cause additional costly delays. If the existing buyer can’t provide a competitive enough offer, you may be refused the short sale.
Hiring a realtor can help you to avoid this, as they can work on your behalf to source a pool of interested buyers that you can keep on reserve in the case that your offer falls through.
Ascent Law offers legal help for short sales in Utah
Working with a skilled attorney is a key step in getting your short sale closer to approval. They can assist you with the administrative basics, such as paperwork and processing time minimization. They can also assist you throughout the negotiation process.
Are you considering a short sale? The experts at Ascent Law want to help. For more information and to book your free consultation today, please give us a call at (801) 432-8682.
Salt Lake City
Salt Lake City, Utah
|City of Salt Lake City|
“The Crossroads of the West”
|Named for||Great Salt Lake|
|• Type||Strong Mayor–council|
|• Mayor||Erin Mendenhall (D)|
|• City||110.81 sq mi (286.99 km2)|
|• Land||110.34 sq mi (285.77 km2)|
|• Water||0.47 sq mi (1.22 km2)|
||4,327 ft (1,288 m)|
|• Rank||122nd in the United States
1st in Utah
|• Density||1,797.52/sq mi (701.84/km2)|
| • Urban
||1,021,243 (US: 42nd)|
| • Metro
||1,257,936 (US: 47th)|
| • CSA
||2,606,548 (US: 22nd)|
|Time zone||UTC−7 (Mountain)|
|• Summer (DST)||UTC−6|
|Area codes||801, 385|
|GNIS feature ID||1454997|
|Major airport||Salt Lake City International Airport|
|Website||Salt Lake City Government|
Salt Lake City (often shortened to Salt Lake and abbreviated as SLC) is the capital and most populous city of Utah, as well as the seat of Salt Lake County, the most populous county in Utah. With a population of 199,723 in 2020, the city is the core of the Salt Lake City metropolitan area, which had a population of 1,257,936 at the 2020 census. Salt Lake City is further situated within a larger metropolis known as the Salt Lake City–Ogden–Provo Combined Statistical Area, a corridor of contiguous urban and suburban development stretched along a 120-mile (190 km) segment of the Wasatch Front, comprising a population of 2,606,548 (as of 2018 estimates), making it the 22nd largest in the nation. It is also the central core of the larger of only two major urban areas located within the Great Basin (the other being Reno, Nevada).
Salt Lake City was founded July 24, 1847, by early pioneer settlers, led by Brigham Young, who were seeking to escape persecution they had experienced while living farther east. The Mormon pioneers, as they would come to be known, entered a semi-arid valley and immediately began planning and building an extensive irrigation network which could feed the population and foster future growth. Salt Lake City’s street grid system is based on a standard compass grid plan, with the southeast corner of Temple Square (the area containing the Salt Lake Temple in downtown Salt Lake City) serving as the origin of the Salt Lake meridian. Owing to its proximity to the Great Salt Lake, the city was originally named Great Salt Lake City. In 1868, the word “Great” was dropped from the city’s name.
Immigration of international members of The Church of Jesus Christ of Latter-day Saints, mining booms, and the construction of the first transcontinental railroad initially brought economic growth, and the city was nicknamed “The Crossroads of the West”. It was traversed by the Lincoln Highway, the first transcontinental highway, in 1913. Two major cross-country freeways, I-15 and I-80, now intersect in the city. The city also has a belt route, I-215.
Salt Lake City has developed a strong tourist industry based primarily on skiing and outdoor recreation. It hosted the 2002 Winter Olympics. It is known for its politically progressive and diverse culture, which stands at contrast with the rest of the state’s conservative leanings. It is home to a significant LGBT community and hosts the annual Utah Pride Festival. It is the industrial banking center of the United States. Salt Lake City and the surrounding area are also the location of several institutions of higher education including the state’s flagship research school, the University of Utah. Sustained drought in Utah has more recently strained Salt Lake City’s water security and caused the Great Salt Lake level drop to record low levels, and impacting the state’s economy, of which the Wasatch Front area anchored by Salt Lake City constitutes 80%.
About Salt Lake City, Utah
Neighborhoods in Salt Lake City, Utah
Poplar Grove, The Avenues, Ballpark, Lower Avenues, Downtown, Woodbury, Central City, Neighborhood House, Salt Lake City Community Development, Rio Grande, The Neighborhood Hive, Neighborhood Services, University Neighborhood Partners, Salt Lake City, Neighborhood Auto Service, Sunnyside Park, Building at Rear, 537 West 200 South, Washington Square Park, Area 51, Brigham Young Historic Park
Things To Do in Salt Lake City, Utah
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Reviews for Ascent Law LLC Salt Lake City, Utah
We've gotten divorce and child custody work from Ascent Law since the beginning because of my ex. We love this divorce firm! Staff is gentle, friendly and skilled. Tanya knows her stuff. Nicole is good and Ryan is fun. Really, all the staff here are careful, kind and flexible. They always answer all my questions, explain what they're doing and provide great legal services. I personally think they are the best for divorce in Utah.
I have had an excellent experience with Ascent Law, Michael Reed is an absolutely incredible attorney. He is 100% honest and straight forward through the entire legal process of things, he also has a wonderful approach to helping better understand certain agreements, rights, and legal standing of matters, to where it was easy to know whats going on the entire process. I appreciate the competency, genuine effort put forth, and assistance I received from Ascent and attorney Michael Reed, and I will be calling these guys if ever I have the need again for their legal assistance! 5star review Wonderful attorneys!
This review is well deserved for Ryan and Josh. New clients should know they are worth the 5 star rating we give them. We needed 2 sessions from them because of the complexity of the matter, but they are both very passionate about his helping others in need. My sister needed bankruptcy and I needed divorce. Sometimes they go hand in hand but a large shout out to this team - also Nicole is one of the sweetest people you ever did meet - she offered me warm cookies!
Mike Anderson and his colleagues & staff are knowledgeable, attentive and caring. In a difficult and complex case that eventually went to trial, Mike was the voice of reason and the confidence I needed. His courtroom abilities are amazing and I felt his defense of me was incredible. His quick thinking and expertise allowed for a positive result when I felt the World was crumbling. His compassion, after the case, has helped me return to a good life. I trust Mike and his staff. They are friendly and very good at what they do.
I worked with Attorney Alex and Paralegal Ami in my divorce case. I got to know the team very well over the course of two years. I cannot think of a better team to have worked with. Ami and Alex are not only exceptional law professions who are very knowledgeable and thorough, they are also the best human beings who empathize with the emotions I was experiencing. Alex was conscious of my budget and worked efficiently to try to reduce unnecessary legal expenses. My case also involved some dealings with a foreign country that Alex and his team had previously dealt with. They did an amazing job addressing cultural barriers in a very respectful manner and did not fall short in quality of work or in standards when dealing with some of these new challenges. Ami deserves a medal for being extremely professional, calming, and compassionate when it is needed most. When you need family law attorneys, call this firm. I now feel I can move forward with grace and dignity.