Are you UPSIDE DOWN in your Las Vegas Home?
You are not alone!
The estimate is that by the end of 2010, nearly 50% of homeowners nationwide will owe more than what their homes value is currently worth. That percentage rises dramatically here in the epicenter of the housing crisis, Las Vegas.
You DO have options when facing the possible foreclosure of your home.
WHAT IS A SHORT SALE?
A “Short Sale” in Las Vegas is the sale of a home in which the amount the home sells for is less than what the current owner still owes on their mortgage. Many banks / lenders/ mortgage companies may agree to accept the proceeds of a short sale, and forgive the balance of what is owed on the mortgage when the current owner can prove they cannot continue to make their payments on the home.
EXAMPLE: If a homeowner owes $100,000 on his/her current mortgage, and is able to sell his home for $90,000 in a short sale, the bank/ lender may accept the $90,000 as payment in full, and forgive the remaining $10,000.
In most approved short sale situations, the bank/ lender typically agrees to pay the Sellers closing costs and Realtor fees as well. A seller CANNOT make a profit when doing a short sale.
The Short Sale process is generally used to avoid foreclosure of your home.
WHY WOULD A LENDER AGREE TO ALLOW A SHORT SALE?
mortgage lender may choose to allow a Short Sale on a Las Vegas property so that they can avoid the typically lengthy and costly foreclosure process/ proceedings.
Banks and mortgage lenders are in the business of lending money, not holding real estate. When a borrower defaults on his/her loan, the bank /lender must then foreclose on the property. Foreclosures are very expensive and can cost a lender several tens of thousands of dollars.
It is much easier, and in most cases more advantageous for a lender to allow a Short Sale, where a Realtor markets and sells the property, typically allowing the lender to make out better financially that a foreclosure would allow.
SHORT SALE ADVANTAGES
- Short sales appear on your credit report as “pre-foreclosure in redemption”, not as “debt discharged due to foreclosure”
- Less impact on your credit score
- All mortgage debt can possibly be fully discharged
Source: Dual upside to foreclosure alternative, (The Early Show (CBS)).
FREQUENTLY ASKED QUESTIONS:
What are the advantages to choosing a Las Vegas short sale vs. letting my lender foreclose? A foreclosure can impact your credit far more than a short sale. Your credit will also recover much more quickly with a short sale. Estimates are 2 years for a Short Sale, 7-10 years for a foreclosure or bankruptcy.
What are some of the qualifications lenders are requiring for a short sale? Lenders are typically looking for some form of a “hardship” when determining whether or not they will allow a short sale. Hardships can include: Loss of job, divorce, illness or death, increased bills or living expenses etc. A good rule of thumb would be answering the questions- do you want to sell, or have to sell.
Who pays the realtors commissions? Your lender pays all real estate commissions. There is no out-of-pocket expenses to you
If my home is already in foreclosure, can I do a short sale? Absolutely! It’s typically an advantage to the lender vs. taking the home back.
Can I stay in my home during the Short Sale Process? Yes. You don’t have to move until closing. As a matter of fact, in many instances, if your lender knows we are actively going through the short sale process, they will delay foreclosure proceedings.
Will the lender continue with foreclosure proceedings during a short sale? Yes, in most instances the lender will continue with proceedings, however many lenders postpone original dates during the process, trying to achieve the short sale.
How long will the short sale process take? Now that’s a GREAT question! Timelines for short sale vary from lender to lender, package to package. Typical timelines will last for several months (4-6) with some closing sooner, some later. The key to the entire process in working with a Realtor that provides excellent communication- with both you, your lender(s), and everyone else involved in the transaction!
CHOOSING A REALTOR QUALIFIED TO HANDLE YOUR SHORT SALE
When thinking about selling your home as a Short Sale, selecting the correct Real Estate Professional is a must. You need someone that has extensive knowledge and understanding about the Short Sale and Negotiation Process.
In many instances, a typical Las Vegas Short Sale will take a qualified Realtor upwards of a hundred hours in preparation, negotiation and finalization to make it work.
You need a Realtor who knows & fully understands the mortgage lender/ bank systems and requirements, as well as understands the process from start to finish.
I can help!
Call me today to see if a Short Sale is the correct choice for you! 702-540-0420
YOUR SHORT SALE & FORECLOSURE RESOURCE
Realty One Group