Las Vegas Short Sale

A Las Vegas Short Sale means the seller’s lender is willing to accept a reduced payoff to release an existing mortgage held against the property. A Las Vegas Short Sale can enable you to get a great deal on a home but as below, this can be a complex transaction that typically does not close within 30 days.

Be Aware a Las Vegas Short Sale can be a Complex Transaction:

The lender may not accept your offer, even if the seller accepts it;
The seller does not need to be in default (stopped making mortgage payments) – the lender (bank) may be willing to accept a Las Vegas Short Sale even if the seller is current in their payments, but, the value has fallen significantly;
The seller may be over encumbered (owe more than the home is worth), so a reduced price may only be on par with actual market value, not below it.

Las Vegas Short Sale Tips from our Team:
Hire an Agent with significant Las Vegas Short Sale Experience – again, these types of transactions are very specialized and you want to work with an agent who has been trained to handle these types of transactions.

Do your Homework – you want to research all aspects of this transaction; let us help you gather data on the Title, if a Foreclosure Notice has been filed and what is owed the Lender. This background information can drive your deal, enabling us to put together an offer that fits the circumstances.

Multiple Loans Mean Challenges – two loans can present challenges, as the first lender’s position is protected by the second lender, unless the second lender does not want to foreclose. As an example, if the seller owes $150K on the first and $50K on the second, then your offer of $150K leaves nothing for the second – the first will need to give something to the second to garner their support.

Get Seller Ready for Lender’s Needs – most lenders will not agree to a Las Vegas Short Sale unless the seller has no equity and is unable to repay the difference between your sales price and the existing loan(s). Sellers may need to draft a hardship letter for the lender and they can also owe taxes on the amount of debt that is forgiven after the transaction is completed.

Provide Documentation & Purchase Offer to Lender – after the seller accepts your offer then you need to forward to the lender for their approval as well. The deal is not finalized until the lender agrees to your offer. Also, have your preapproval for financing available and forward this to the lender and a list of comparables will also help to substantiate your price.

Create Urgency with a Deadline – give the lender a specific amount of time to respond, enabling you to cancel if they don’t meet your deadline. Most lenders can make a decision in a 2-3 week period of time; so, map your timeline to this.

Know who your are Dealing With – get a name and all contacts at your lender and send them your offer, not to a department where your offer may get lost.

Inspection is a Must – it is critical to understand the shape your property is in. In most cases the lender will not pay for inspections that would usually be paid for by the seller, so you must handle this yourself. Make sure you don’t waive your right to home inspection and make your offer contingent upon approving them. These should include: pest, roof, septic system, chimney or fireplace.

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