Foreclosure - Frequently Asked Questions
What is a loan modification?
A loan modification is just what it sounds like, a modification or change to one or more the existing terms of a loan. If you are in default on the current loan/mortgage agreement, your lender may work with you to make the mortgage more affordable. For example they could lower the interest rate or spread the loan out over a longer period of time. Read more...
I received a "Notice of Default" on my house what does that mean?
Your lender has initiated foreclosure on you home. The Utah Foreclosure Process will follow a specific time line. You must do something to interrupt the process NOW.
How do i stop or postpone the foreclosure on my home?
First, contact you lender ASAP and ask them if there are any "loan workout programs" available to help you avoid foreclosure. I am also here to help. As a Certified Distressed Property Expert (CDPE), I am uniquely qualified to walk distressed homeowners through the many foreclosure alternatives that are available. If you or someone you know could use my help, contact me today for a confidential consultation. Together, we will work to the best possible solution for any situation.
If your home is foreclosed on, you will suffer some repercussions such as:
Severe credit damage- A foreclosure will have a very negative impact on your credit score. This will make it difficult to obtain credit in the future. A foreclosure will stay on your credit report for 7 years.
Possible deficiency judgement- State law allows lenders to pursue a borrower for the deficiency balance after foreclosure. This means after your home is sold at auction, your lender could sue you and try to collect their loss from you personally. If they are awarded a judgement by the courts, this judgment could attach to other assets you may have. They could also go as far as garnishing wages.
There are other repercussions of foreclosure, such as the impact it may have on employment opportunities, rental agreements, etc. Contact us today and we can help you understand how a foreclosure could impact you.
WHAT IS A "SHORT SALE"?
Simply put, a short sale is the sale of a property for less than the amount owed. For Example: If you owed $200,000 on your Utah home, but the current market value of the home is only $185,000, your lender may agree to accept $185,000 (minus the cost of selling. i.e. closing costs and Realtor commissions) to release their lien against the property. This is called a short sale because the lender is releasing their lien "short" of the amount owed. Read more...
What happens after foreclosure?
If your home reaches the foreclosure auction block, that means an investor will purchase the property at the highest bid. If no one bids on the property then it goes back to the bank, and is now an REO property (Real Estate Owned). You will now either be "evicted" or contacted by the new owner of your home to work out another amicable situation.
Read our blog post titled "Short Sale vs. Foreclosure" for a comparison on recovering from a foreclosure vs. being proactive and participating with your lender to avoid foreclosure.
can i do a short sale if i already filed bankruptcy?
Yes, it takes a little longer and is more complex but we are very experienced in working with Utah homeowners who have already filed bankruptcy.
what is a "deficiency judgement"?
When a house is sold (short sale or foreclosure) for less than the outstanding mortgage debt, the difference between the outstanding loan amount and the short sale or foreclosure sale price is called the deficiency
If I go through a short sale or foreclosure, who will rent to me?
We may be able to help. At Nu-Start Properties, Inc. we specialize in helping people get a "new start". If we don't have a property available that fits your needs, we will assist, as best as we can, in locating another landlord that will look beyond your past hardships and focus more on your current capabilities.
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