When a short sale is first listed by a
Realtor in Utah County an artificial price is posted to the home. I
call it an artificial price because it has not been
approved by the lender. The Realtor selects a price that
they think will generate showings and offers. Once a
home has received and accepted an offer the Realtor
attempts to get the price approved by the lender. This
is a very complex and lengthy process. In can become
even more complicated when a home has several liens on
it with various lenders. Each bank wants as much money
as possible from the sale.
This type of listing is called an unapproved Utah County
Short Sale. Approximately 80% of the short sales in Utah
County are considered unapproved short sales. These
homes will sit anywhere from 3 to 24 months waiting for
approval from the bank. Don't get too exicited about an
unapproved short sale. It is common for the price to be
declined and a higher price posted after waiting months
for approval. Instead, focus on the approved short
sales.
An Approved Utah County Short Sale
An approved Utah County Short Sale is a
completely different type of listing. An approved Utah
County Short Sale is a listing where the home price has
been approved by a bank. A short sale typically never
starts with an approved short sale price. A buyer must first
attempt to get the price approved. The listing Realtor
is the one that works to get the price approved. Ken
Bulpitt at Team Teasdale Realty works exclusively on
getting all of our short sales approved. Our team has sold
and closed hundreds of short sales in Utah County. We
are very experienced in the short sale business.
If a buyer gets tired
of waiting for bank approval and cancels his offer, the
buyers offer remains in line waiting for approval at the
bank. If the price is finally approved the Realtor turns
around and relists the home as an approved Utah County
Short Sale. This home is posted active and available on
the MLS as an approved short sale for anyone to buy.
Approved short sales are about 20% of the
inventory in Utah County. These are the best type of
short sales to buy. Once a short sale is approved it may
be ready to close within 30-60 days. A new name will
need to be submitted to the bank for approval. Once the
buyers new name has been approved and an approval letter
has been received you can head to closing. This letter
typically has a expiration date. It is possible to
extend the expiration date but it is slightly risky. In
some cases the bank will not extend the closing date.
I have sold over 1,000 homes in Utah County in the last
two decades. A portion of my business has been
negotiating with banks on behalf of my buyer and seller
clients. This can be very stressful. Banks typically
don’t care about the individual; they only care about
their precious spreadsheet.
A short sale occurs when the bank has agreed to sell the
home at a loss to avoid going into a costly and lengthy
bank foreclosure. Many people advertise homes that are short
sales. You should ask if the home is an approved or
unapproved short sale.
If the home is an unapproved short sale be careful. The
home may never be approved or by the time it is
approved, it could have ten offers. If you chose to make
an offer on an unapproved short sale, don’t get your
hopes up. You will most always be disappointed several
long months later. You need to be able to discern the
true and available bargains and jockey into a
non-competing first position. We will teach you how to
recognize a true available short sale and help you avoid
the garbage.
If it is truly an approved short sale, you must demand
that the selling agent commits to your offer and pushes
your offer through the bank. Otherwise, you will end up
with several competing offers. Negotiating and buying a
short sale in Utah County is a complete and skilled
art. It is one of the most challenging parts on my job
as a broker. We can help you buy a foreclosure
distress short sale. This is where an experienced
Utah
County Realtor
can be a very valuable asset. If you would like Team
Teasdale Realty to help you purchase a Utah County Short
Sale Contact Paul:
Short Sale Request Form
