In a short sale, a seller facing the threat of foreclosure enters into an agreement with their mortgage lender to accept a price for the property that's less than the amount they owe. The seller makes no profit on the sale, but avoids many of the problems that would come from a foreclosure. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties. We can help.
A short sale may be right for you if you are unable to make your mortgage payments due to financial hardship, are facing foreclosure, or are unable to sell your home for its mortgage value due to market conditions. We will negotiate with your lender(s) to allow a sale of your property at an amount less than what is owed on the mortgage(s). In many cases, we can negotiate for a debt forgiveness on the remaining original debt balance.
POSSIBLE ADVANTAGES OF A SHORT SALE
With a short sale, Las Vegas sellers avoid having to go through a lengthy foreclosure process and prevent the impact of a foreclosure on their credit score. In a short sale, the seller and the lender work together to determine the details of the agreement, but typically sellers who complete a short sale also avoid owing the balance of the loan.
The biggest advantage to buyers is clearly the prospect of moving into a new property at a great discount. Buyers often find that short sales have an additional benefit over foreclosures too, since unlike a foreclosure, there's not much of a risk that the buyer will need to take action to remove the seller from the property.
Of course,Las Vegas mortgage lenders can benefit as well. With a short sale, lenders don't have to worry about getting involved in a long foreclosure process. More than anything else, lenders want their money back, and they generally want to steer clear of taking responsibility for selling a home. So, a short sale can actually be good for everyone involved.
POTENTIAL PITFALLS OF A SHORT SALE
Sellers considering a short sale must understand a few important things. First, not all lenders will offer to relieve the seller of the responsibility of paying off the balance of the loan. So, sellers should get a solid commitment from lenders that states this is part of the deal. Also, though the seller is avoiding a foreclosure, even a short sale may affect their credit score to some extent. Sellers should discuss this issue with their lender to figure out how the process will be reported to the credit agencies.
Most importantly, not all sellers even qualify for entering into a short sale. For example, few lenders will enter into a short sale agreement with sellers who have not yet missed multiple payments. So, if you're a seller thinking about a short sale, you'll want to talk to us about the best options available.
Las Vegas buyers need to be wary too, since getting a deal on a short sale is not as easy as it may sound. In fact, there are some extra steps that buyers need to take when entering into a short sale, which can require doing some additional homework and assembling the right paperwork.
Whether you are a buyer or a seller, you should talk to an expert real estate attorney before making a decision.