Las Vegas Short Sales | Short Sale Real Estate Agent

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Las Vegas Short Sales and avoiding foreclosure.

A short sale in Las Vegas is when a homeowner owes more than what the Las Vegas home is worth and the lender or lenders, agree to accept less than what is owed, a short payoff. A short sale takes a knowledgeable agent to get the transaction closed. We are experienced Las Vegas Realtors, with the knowledge required to close short sales in Las Vegas for sellers as well as buyers.

We have set up this page to help Las Vegas homeowners here in the valley who are facing foreclosure. As everyone is aware, Las Vegas is one of the worst hit Real Estate Markets in the country. If you have received a letter from us, then a Notice of Default has been filed by your lender. These are filed after a homeowner is at least 4 months past due.

This can be a very difficult time for homeowners facing foreclosure in Las Vegas. We understand what you are going through and can help. The first step is figure out what works best for you. We have compiled a list of some of the choices you have.

Our first step is to provide our potential clients a free half hour consultation with an attorney to make sure a short sale is the right choice for you. There are many choices and consequences when faced with foreclosure. Please contact us sooner than later so we as much time possible to help.

A short sale of your Las Vegas home may be a choice for you to sell your home if you owe more on the home than it’s current market value.

1. Short Sale. This when you sell the home for less than what is owed on the property. In most cases it is more advantageous for the bank to do a short sale than go through the foreclosure, carry the property, list the home and still have the closing costs and commissions that they would with a short sale. Another advantage of a short sale is you can buy a new home in 2 years after a short sale with a Fannie Mae Freddie Mac backed loan compared to 5 years with a foreclosure.

The homeowners do not pay for the real estate agent’s commissions, they come from of the banks proceeds of the sale. We will work with your lender directly to negotiate the short sale on your behalf. Visit our page on how to list your home.

2. Nothing. The lender will set a sale date during the foreclosure process to sell the home at the Clark County steps. This is a little confusing because at auction the lender needs to sell the home for what is owed on it. In our market, most of the homes are upside down. When this happens, the home goes back to the bank and becomes an REO( Real Estate Owned) property. You will then be evicted from the home and given days to move out. A big factor is if you have a foreclosure on your credit you will have to wait 5 years before you can buy a home through Fannie Mae or Freddie Mac backed loan.

3. Loan Modification. This should be your first thing to do if you want to stay in the home. The lender does not want the property back through a foreclosure. If you have a financial hardship, health reasons, loss of employment or decrease in salary, the lender may try to work out a repayment plan, move past due amounts to the end of the loan or spread out the missed payments over time. Please call your lender and ask for the loan workout or loss mitigation department. They will require your financial worksheet with bills and pay stubs, a hardship letter and past tax returns. This can be a long process for the lender to review your file, but it could keep you in your home. We highly recommend this especially if you want to save your home.

4. Deed in Lieu of Foreclosure. This is an alternative to foreclosure of your Las Vegas home where the home owner signs over the deed to the lender. There are 4 main conditions for a lender to consider a deed-in-lieu.
1. Foreclosure is imminent and unavoidable
2. The borrower is unable to sell the property.
3. There should be no other liens, or attachments to the property.
4. The property needs to be left in broom clean condition.

5. Bankruptcy. This option can liquidate debt and/or allow more time. Chapter 7 (Liquidation) To completely settle personal debt. –Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years. –Chapter 11 (Business Reorganization) A business debt solution. Please contact a qualified attorney to find out what your options are.

Regardless of what choice you make, your credit is going to take a hit. Below are frequently asked questions before someone does a short sale to avoid a foreclosure.

1. Can the lender sue for the deficiency? The answer is yes. On a foreclosure, the first mortgage holder can file for a deficiency judgment within 180 days of the foreclosure. The second has 6 years to come after the homeowner for the defiency. On a short sale, the first and second have 6 years to pursue a defiency judgement. Regardless of what you do this is a reality. When you do a short sale of your Las Vegas home, it is because there is a financial hardship. They have a copy of your financial and can see it does not make financial sense to spend more money on attorney fees etc. to pursue. This is exactly the reason why we have our clients speak with our attorney to fully understand whether a short sale is the best choice for you.

2. Is there a tax liability? If the lender agrees to the short sale, the lender will issue you a 1099 for the short difference. The Mortgage Forgiveness Debt Relief Act of 2007 is an IRS code which addresses the tax consequences to a Seller of a Short Sale. You should speak to a real estate lawyer or a tax accountant to find out whether you will be exempt from these taxes or not. Generally speaking, if the property is a primary residence you are exempt from paying taxes on the 1099 amount entirely. If you have an investment property you maybe able to show you are insolvent on tax form 982 to help with the tax penalty of the gain. This means you have more debt than assets. Again we are NOT attorneys or accountants so you should consult competent professionals with these important issues.

3. Do I have to pay for the services? No. As Las Vegas Realtors, we do not charge the homeowners for listing their home, marketing the property and negotiating the short sale. Buying and selling agents commissions and closing costs are paid from the lenders gross proceeds from the sale of the distressed home.

4. How long will it take? The typical short sale takes 2 to 4 months to close from the time an offer is written and accepted on the home. There really is no typical short sale. Every file is a different set of circumstances. Some can go quicker and some will take longer. The key is to submit a complete package and submit any additional requested info in a timely matter. An experienced Las Vegas agent can get a Las Vegas short sale through to approval faster than an agent who does not know what they are doing.

5.Can I sell it to a relative or buy it myself at the new price? No. There will be an arms length transaction form required by buyer and seller to sign stating that they are not related to eachother. once you sell that is it, you have to move out.

6. Can I get any proceeds from the sale? No. No funds what so ever will go to the seller in a short sale transaction.

7. My home is in foreclosure, can I still do a short sale? We have successfully stopped a sale of a Las Vegas home at the steps the morning of the sale by submitting an entire short sale package with a bonafide offer the evening before. This is not always typical of all lenders but always worth a shot no matter how far along you are. Over 80% of homeowners who are in default NEVER talk with the lender during the foreclosure process. Communication is the key even though burying your head may seem like the easy choice. It is actually easier to communicate and know your options.

Call us to discuss your options further. We can help you sell your Las Vegas home on a short sale or even give you some tips to try to save it.

Jeff and Lee Ann Mix