Want to Walk away from your Utah Home? Or even a better question....Is it ethical?

Scenario #1:  You and your spouse were incredibly excited to enter the real estate market.  You graduated from college in 2003 and have been paying off debts diligently and saving up your money for a 5-20% down payment.  Interest rates are at a low and the market is looking like it's doing nothing but going up.  You've retained the services of an excellent REALTOR® and you've moved forward in negotiating a win-win deal with a great starter home in Utah.  You get a good loan, place your down payment, close on the home and begin living the American Dream owning your 'piece of the pie'.  Life is wonderful in Utah real estate in 2007.

Then in September 2009 a financial crisis effected nearly ALL Americans nationwide with a loss of financial liquidity in the marketplace, overbuilding of real estate, aggressive lending, agressive debt accumulation, irresponsible borrowing & spending, a weakening dollar, and troubled business fronts in the auto industry which will soon spread throughout nearly every industry spectrum in the marketplace.  

Suddenly, our wonderful world of 2007 has changed in the Utah Real Estate market and IN YOUR HOME.  You now have two little mouths to feed, student loan debts are still lurking, but you've been able to still save some money and you've been living within your means. The straw that broke the camels back is that you just found out your company has decided to sell out to a larger firm who will buy their debt and they are dissolving your position. Your profession is in a hiring freeze and soon not only are your reserves dissolved, but you cannot find a job to replace the same income so you are pulling in 60% of your normal planned on income with a second rate position in a competitors business.  Your property has also depreciated by roughly 15% and you will now have to bring money to the closing table if you were to sell....money you don't currently have.

WHAT ARE YOUR OPTIONS?

1. You can call your bank to discuss what they can do to help you Modify your current mortgage obligations
2. You can attempt to short-sale your property if you can prove that your payment is over 31% of your gross monthly income, you have a true hardship affecting your ability to pay, and you have successfully filled out the necessary documentation with the lien holders to fulfill a successful short-sale.
3. You can do a deed in lieu of foreclosure to essentially 'give back' the home to the bank.  The bank does not like being in the real estate business...they are in the money business.  But this will not affect your credit nearly as much as a foreclosure
4. You can choose to allow the bank to foreclose on the property

What you should NOT do.

1. You should not ignore the bank in trying to work out a solution to your obligations.
2. You should not harm the home through damage, neglect, or theft of items that you chose to finance in the purchase of the home.
3. You should not sign your deed away to an investor with the promise of 'fixing the problem for you'.
4. You should not freeride in the home for as long as possible and harm the banks ability to recover the losses on an unfulfilled mortgage.

Overall, the options are very difficult, but there are many resources available in Utah to help home owners in need of assistance to know what their best options are.  You can call Steven Bond with RE/MAX Results at 801-400-6580 to find what your options could be.  As a Certified Distressed Property Expert and a Short Sale and Foreclosure Resource Professional I can assist you in finding out the best options to help you continue to live the American Dream.  This moment shall pass and if you handle the challenge with your head up and with Integrity you will have a much better chance of making the future bright and beneficial.

***Keep following www.UtahFeaturedHomes.com to track the blog and see when the next blog of Scenario #2  will be posted about the No No's of loan deliquency. 

I have successfully negotiated short-sales throughout all of Utah County including, Saratoga Springs, Eagle Mountain, Spanish Fork, Provo, Springville, Orem, Lehi, American Fork, Santaquin, and Pleasant Grove.  When getting involved in short-sales you need an agent that understands the process and can help you navigate your way through to a successful closing, whether you are buying or selling.  Turn to Steven Bond for results.

'Your Advocate in Utah Real Estate'