Loan Modification: is where the lender makes a determination that changing the terms of the loan is in the best interests of the lender.  Government usually provides some sort of incentive but this isn't the only reason the lender will permanantly change the terms of the loan.  They might lower the payment by reducing the interst rate, amortizing over 40 years vs. 30 years.  An interest rate reduction could be temporary or for the life of the loan.

Short-Sale: Is where the seller through their agent or broker who specializes in short-sales asks the bank to let them sell the house for less than what is owed for a win-win situation versus the stain of foreclosure.

Pre-Foreclosure: Is when the seller has equity they need to preserve but foreclosure is looming. A delicate situation where a full-time professional or specialist is essential.

Foreclosure: Is a black-eye that will haunt. Utah is a default judgement state therefore the bank can sell the automatic deficiency judgment to a debt-chasing attorney who can collect the difference from what they recoup and what the bank was owed --ruthlessly.

Typical Utah Foreclosure Timeline  

EVENT	DATE	EFFECTIVE PERIOD
Last Payment made	4/30/2010	Varies but typically three payment periods or 90 days
Notice of Default (NOD) filing	8/1/2010	Copy delivered within 10 calendar days
NOD mailed/delivered	8/11/2010	Reinstatement period begins for 90 days
Reinstatement period ends	10/10/2010	Trustee sale date scheduled at least 21 days later
Cure default amount and reinstate before	10/26/2010	5 days before trustee sale
Earliest Trustee Sale Date	10/31/2010	Unless collaboratively postponed by lien holder with Destiny Real Estate
Cash for Keys or legal eviction	11/1/2010	Lien holder or new owner could offer incentive or evict.