Yes. You can sell a Las Vegas home for less than you owe, and a short sale is only one way to do it. Most owners we talk with today are $20,000 to $50,000 short. In 2010 the gap was often $200,000. A smaller gap means more options, and some of them let you keep the house.
Are you upside down on your house?
You are upside down, or underwater, when your loan balance is more than your home would sell for after selling costs. In Las Vegas those costs run about 7% to 8% of the price, so a home worth $400,000 nets about $370,000. If you owe $385,000, you are about $15,000 short even though the home is worth more than the loan.
Check your numbers with our equity calculator. It takes two minutes.
Who is upside down in Las Vegas right now
We went through every Las Vegas short sale since January 2024. Most of the sellers bought in 2022, when prices peaked, and a lot of 2023 and 2024 buyers are already underwater. Owners who bought in 2021 or later are selling for a median of about 7% to 9% below what they paid. Condos are deeper, about 16% below. See the full report.
Your options, from best to last resort
- Keep the home. A loan modification, repayment plan or forbearance can lower the payment or catch you up. Here is what to ask your lender for.
- Sell normally and cover the gap. If you are a few thousand dollars short, bringing cash to closing keeps your credit clean and avoids lender approval.
- Rent it out until values recover. This works when the rent covers the payment, HOA dues and repairs. Check your HOA rental rules first.
- Short sale. Your lender agrees to take less than you owe. You usually pay nothing at closing. How the process works, step by step.
- Deed in lieu of foreclosure. You sign the home back to the lender. Most lenders want you to try a sale first.
- Foreclosure. This is the outcome to avoid. It hits your credit hardest and takes the decisions out of your hands.
Need to move but owe more than the house is worth?
A job transfer, a divorce, a growing family or caring for a parent can force a move at the wrong time. Lenders accept relocation as a hardship, and you do not have to be behind on payments to ask about a short sale. Call your servicer’s loss mitigation department before you list and tell them why you are moving. Find your lender’s number.
What happens to the difference?
In a short sale, the lender may forgive the shortfall. In Nevada, whether the lender can come after you for it depends on the type of loan and on what the approval letter says, so get the waiver in writing. Forgiven debt can also count as income. Read how Nevada deficiency rules work.
We are real estate agents, not CPAs, tax preparers or attorneys. Nothing on this page is tax or legal advice. Forgiven debt can be taxable, and whether you can be pursued for the difference depends on your loan and your lender’s paperwork. Talk with a CPA and a Nevada attorney before you agree to a short sale.
Questions homeowners ask
What happens if I sell my house for less than I owe?
Your lender has to approve the sale unless you pay the difference at closing. If they approve a short sale, they take the sale proceeds and release the lien. Ask for the waived amount to be written into the approval letter.
Can you sell a house with no equity?
Yes. With no equity you still have selling costs of about 7% to 8%, so you would either bring that amount to closing or ask your lender for a short sale.
What if I stop paying my mortgage and move out?
Please call your lender first. Missed payments lead to a notice of default, late fees get added to what you owe, and an empty house can attract squatters, which we see in Las Vegas listings every month. Every option on this page is easier while you are still in touch with your lender.
Is a short sale better than foreclosure?
Usually. You control the sale, the lender can waive the balance in writing, and the wait to buy again is shorter. See the side-by-side comparison.
Talk with us
We have been licensed since 2006 and worked Las Vegas short sales through the last crash. We will look at your numbers for free and in confidence, and we will tell you if keeping the house is the better move. Call or text Jeff at 702-510-9625 or Lee Ann at 702-205-9430, or take the two-minute quiz.
Market figures are from the Las Vegas REALTORS® MLS for January 2024 through October 11, 2026, and are deemed reliable but not guaranteed. General information only. Jeff Mix, Nevada license S.0074457. Lee Ann Mix, Nevada license BS.0143453. The Mix Group at Realty ONE Group.