Learn about Utah, the suburbs, neighborhoods, schools and the real estate market here. This blog is authored by real estate experts from all around Utah. If you're looking to stay updated on Utah's Real Estate Market, this is the place for you.
If you are in the market to rent a home in the near future, then take heed of this warning. Scammers are trying to rent you homes that are not available, not on the market, and frequently occupied. Homes that are REO or Short Sales are being targeted. Almost always the REO properties are vacant and the short sales are often vacant as well.
The scam works like this: After a house is listed on the market, a scammer then posts an ad online trying to rent out the home before it is sold. Interested candidates will then contact the scammer about renting the property. The scammer asks for them to submit their personal credit information for the lease application as well as two months of rent. Once they have your information, they have you!
Often times the renters don’t even know it’s a scam until they pick a key up from the scammers “office” and go and try to move in. They find the key doesn’t work, and sometimes the home will still be occupied by the current owners if it is a short sale.
Freddie Mac is aggressively watching the internet ads and removing any posting they find, but they won’t catch them all. To ensure you don’t get caught up in this, there are a couple of very obvious indicators to look for when talking to the “landlord.”
1. Try to get the current homeowners name. If they cannot give you the name, then it’s likely a scam.
2. If they are out of the country, keep your guard up.
3. They might ask you to send payment to them through Western Union.
4. They will try to “rent” the home to you without a lease being signed.
If you notice any of these indicators, please flag the ad as inappropriate or as a scam, and contact the proper authorities. Spread the word to all of your family and friends that are needing to rent a home so they don’t become the next victim.
For more information, please contact me at 801-999-8305.
Do you need to sell your home for less than the amount owed on the mortgage? Have you heard of the “horror” stories regarding short sales? Having the “right” Utah real estate agent represent you through the short sale process is critical to protecting your best interests. What is a short sale? Learn more about short sales by clicking here.
Zoom Real Estate has a Short Sale team that has experience in working with sellers who need to sell their home for less than the mortgage owed to the bank. The short sale process is highly specialized. It is very important to have a Realtor who is experienced in working with this type of sale. Having the right contacts at the banks, knowing what paperwork to submit and how to market your home for a quick sale is important. The right agent will know who to call at the bank, what paperwork to submit, proper timelines and how to negotiate with the bank.
zoomUTAH.com has partnered with a LOCAL law firm CC Brown Law to provide a FREE ATTORNEY CONSULTATION to any homeowner who is experiencing a financial hardship and considering a short sale. There may be other legal options available to you other than a short sale. Other options include loan modification, forbearance or other acceptable workout solutions. Partnering with a local Utah law firm allows our clients the peace of mind that they are exploring all legal defenses.
Do you have questions such as:
What happens if I don’t sell our home through a short sale?
How will a short sale affect my credit?
Does the short sale process take one year or more?
Can the bank come after my assets or income after a short sale?
As a short sale specialist, I have have worked on over 300 files with the bank! If you need to speak to an expert that will give you straight answers on the tough questions, I am the agent you should call. I would be happy to discuss your options in selling your home. Call me direct at (801) 792-5040.
I get questions from buyers on a daily basis in regards to short-sales. I could probably write a book on the process of buying a short-sale or a foreclosed home, but I’m going to consolidate it down to a few paragraphs.
There are three stages of a distressed property.
Step 1. Short Sale (Subject to 3rd party approval) – The seller is experiencing a financial hardship and they need to sell the home. The seller lists the home with a Realtor to find out they owe more on the home than it is worth (hence the term short-sale). The Realtor or the seller communicates with the bank and lets them know they are going to try to sell it short. The bank will usually not elude to what they will be willing to sell it for until an offer is on the table. The bank will say… “show us an offer and we will talk”. These homes are listed at a price that usually will not be accepted by the bank. Homes are listed to encourage offers and can be a bit misleading. When an offer is received and sent to the bank, it can take a couple months for them to respond (yes I said months). Typically homes have multiple liens on the property and ALL lien holders must agree before the home can be sold. Listings with this status can take up to a year to close on depending on many factors.
Step 2. Short Sale (Approved by 3rd party) – The bank has received an offer and has responded with either an acceptance OR with a “We won’t take this offer price, but we will take $XXX,XXX”. If the original offer was not accepted, the first person to put in an offer at the approved price gets it. If you put in a lower offer then the bank will need to review offers again which could take weeks or even months for a response. After a bank approves a price you could close in a matter of weeks depending on the bank. If the price is approved, the bank usually has acceptance from the junior lien holders to sell the home as well.
Step 3. Foreclosure – The home never sold as a short sale and the home goes up for auction at the county steps. Junior liens are wiped out and if nobody bid on the home at the county steps, the home goes back to the bank. The bank hires a Realtor to market the home and generally prices it for a quick sale. The bank is usually quick to respond and wants to close ASAP. This is the easiest of the three steps.
Most of my clients avoid Step 1 listings as the price really is a shot in the dark. Be prepared to pay as much as 20% over the list price on a Subject to 3rd party approval listing. If you have a lot of patience to find a home, then buying a short-sale can be a great avenue. If you are looking to buy a home in the coming months, I’d recommend you avoid Subject To Short Sale listings.
Keep in mind distressed properties do not always equate to good deals. There are many motivated sellers out there that are not losing their home and will sell at a great price. A lot of distressed properties need work and usually come with no disclosures from a seller going over any issues the home may have.
Today more than ever, it is important to have a Realtor on your side when buying or selling Utah real estate. Real estate has become more specialized over the years in an ever changing industry.
Contact us today at 801-999-8005 to talk to a Zoom Real Estate Realtor.
Buying a short-sale or a foreclosed home has its drawbacks, but it can also present a wonderful opportunity for a buyer. One of the most frequent questions that I get from buyers is “What is the difference between a short-sale and a foreclosure?” Let me explain…
A short-sale is when a lender agrees to take less money than is owed on a mortgage in order to facilitate the purchase of the property, usually to prevent the property from going into foreclosure. Typically a seller has incurred some type of financial hardship and is unable to continue making mortgage payments. The home is listed on the market to attract potential buyers usually at an estimated value. The listed price is usually not approved by the lender and buyers should be aware the actual sales price may be higher or lower depending on what the bank is willing to accept. Short-sales take anywhere from 3-8 months from listing to closing so if you are in a hurry to find a home, don’t bother.
A foreclosure is a process in which the lender (aka bank) takes back the home from the borrower. This process happens after the short-sale period or to be more specific, after the home has been given back to the bank. When you are just dealing with the bank, the process typically is much faster and you can close within a matter of weeks!
Not every short-sale or foreclosure will be a great deal. When you are dealing with these types or properties you really need to do your due diligence and have them inspected by professionals prior to closing. These homes are in distress and may need some major improvements to make them habitable.
The Real Estate directory on zoomUTAH.com does include short-sale and foreclosure listings so you can begin your search there. If you are interested in learning more or would like me to assist you in your search for a distressed property, call me at 801-999-8005. If you request, I can also email you short-sale and foreclosure listings as they hit the market through our Listing Alert service. If you are a seller and facing a hardship, contact me today to discuss how to avoid foreclosure, and alternatives for dealing with lenders.