Short Sale

A short sale is the sale of property for an amount that is less than the amount owed on on the property.  A short sale may be a viable option if you are unable to continue to pay for the property and you cannot sell the property for the amount that is owed.
A short sale requires the consent of the mortgage company. There are ramifications for a short sale that should be understood before consenting to a short sale. Things to consider:
  • Will the deficiency be waived by local law or by the mortgagor?
  • Can you receive any money at closing?
  •  How will a short sale impact your credit?
  • What is the waiting period following a short sale to qualify for a new mortgage?
  • What is the process to get mortgage approval?
  • What are the tax consequences of a Short Sale?
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Quick FHA Short Sale Facts

If you’re considering a short sale and you currently have an FHA mortgage, you’ll need to learn about the benefits and restrictions to participating in the program. Following are a few quick details, which highlight the benefits and requirements of participating in the program: Benefits of a FHA Short Sale
  • Deficiency is waived
  • Homeowner can receive between $750 and $1000 at closing for participation
  • HUD will pay an additional amount up to $1,500 for the discharge of junior liens after the borrower’s incentive has been applied.
  • HUD allows reasonable costs of the sale including up to 6% sales commission and 1% “Seller’s Costs”
  • No cash contribution or promissory note required
  • Once approved, the foreclosure process is put on hold for 120 days
FHA requirements for eligibility
  • Homeowner has a documented hardship
  • Must be an “arms length” transaction
  • Property must be owner-occupied
    • Exceptions: When it is verifiable that the need to vacate was related to the cause of default (job loss, transfer, divorce, death), and the subject property was not purchased as a rental investment, or used as a rental for more than 18 months
  • Borrower must be 31 days or more delinquent at the time of sale
To find out if you are eligible for a FHA Short Sale in Utah or should you have any questions about the services we provide, contact us by Phone at (801) 432-8682 or email at
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