Selling Your Las Vegas Home as a Short Sale
You need to sell your Las Vegas Home. Perhaps a change in your life has created a hardship such as a medical condition, loss of job, a cut back in your work hours or a seperation.
Whatever the situation may be, you can't handle the mortgage payments and you need to sell and cut your expenses. But, your Las Vegas home is worth less then your loan balances and you don't want to go into a foreclosure situation so what's your alternative?
A Las Vegas Short Sale Could be the Alternative to a Foreclosure
It's important to understand what a Las Vegas short sale is to begin with. A Short Sale is an agreement between the holder of your mortgages to take less then what is owed on the Las Vegas home and approve a hardship to allow you to get out.
Why would a Bank agree to this? Contrary to popular belief, Banks don't want to take back Las Vegas homes in a Foreclosure and own Las Vegas real estate. It's a very expensive process and at the end of the day, they are only going to be able to sell the Las Vegas home after the time consuming foreclosure process for what's it worth anyways.
Time is money and if the Las Vegas Home is sitting vacant for months, it's costing the bank a lot of money and headaches. Let's not even talk about vandalism and theft issues going on for vacant Las Vegas homes. Foreclosure signs in front of a property could be a big target and some Las Vegas Bank Repo specialists that work for the asset managers to sell these properties have even stopped advertising them as a Las Vegas Bank Repo.
If it's worth less then what they foreclose on, they'll have to take a loss anyways with additional fees, loss of time, etc.. and more then likely, they'll still be using a Las Vegas REALTOR to sell the home.
In addition, when a bank has a non-performing loan on their books, it limits their ability to re-lend money which means the opportunity cost is adding to their losses.
It's no secret that there are plenty of Las Vegas foreclosures on the market due to Las Vegas real estate market conditions and when buyers stopped buying, Las Vegas real estate values dropped. It's not your fault, it's just a market condition so don't feel ashamed and most importantly, don't think you have no options but Foreclosure.
Selling Your Las Vegas Home as a Short Sale May be an Alternative
I have a very good friend who is the Vice President of Commercial Lending for a bank in another state and due to the slowdown, even they are taking back brand new homes and projects in what was believed to be a stable real estate market. The builder owes more then what they can sell them for, the bank first attempts to work something out with the New Home Builder and if that does not work out, they then have to foreclose on the projects and turn around and sell them.
It's a big headache for a business designed to make money from lending money, Not Selling Real Estate! They are not in the business to sell real estate. On top of that, they can only sell these homes for what they are worth which means they have to take a loss. They will even tell you, when it does come down to having to do work out programs such as Short Sales, they would prefer to work with Experienced and Licensed Real Estate Professionals in the current real estate environment.
Construction loans are different then a typical mortgage but the example just shows that it's even happening to new home builders in real estate markets that never had high appreciation rates. Trust me, I know the exact feelings from an insider in the lending business. The difference between a new home builder and you is that the new home builder has no incentive to spend money or time to advertise homes for sale they are not going to make a dime for anyways.
You will not make any money doing a short sale, but you are not going to pay any out of pocket commissions to sell your Las Vegas home as a short sale. Las Vegas REALTORS can not give you legal or tax advice so you should consult with an Attorney or an Accountant for the implications of doing a Las Vegas short sale if you have legal or financial questions.
But... just about everybody will agree that doing a short sale is better then going through a foreclosure and there are options available when doing a short sale for a more favorable credit reporting from the lender.
It's also important to understand that if the Las Vegas home is your primary residence, recent legislation has changed the tax implications that were previously involved and you can read more about it at the Internal Revenue Service website.
Once again, REALTORS that are not Attorneys or Accountants cannot give you legal or tax advice. Any Las Vegas Real Estate Agent giving legal or personal financial advice without the formal education, licenses and/or certifications is a sign of Inexperience, not Experience!
What we can do though, is help you with the process to possibly get out of a bad situation so you can move on in life. Not only do we have experience and systems in place to handle Las Vegas short sales, we have experience in Marketing Las Vegas real estate for sale with professional Las Vegas Home selling services.
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Las Vegas Short Sale vs. Las Vegas Foreclosure Homeowner Consequences.
Fannie Mae Announces Stiffer Penalties for Strategic Defaulters - Longer time frame to qualify for a Fannie Mae loan for Strategic Defaulters - Notice to Loan Servicers to Monitor and Pursue Deficiency Judgements. FHA and Freddie Mac may follow suit.