The Foreclosure Tour Bus attended a charity event, Touch A Truck, for children to climb into Fire Trucks, SWAT Trucks, 16 Wheelers, Limos, Ambulances, Helicopters, and the Foreclosure Tour Bus.  The moms and dads visited with the Foreclosure team while their children beeped the horn and posed behind the steering wheel for pictures.  They ask some important questions about short sales and the current Las Vegas real estate market.

Here is a typical conversation.  The home owner ask “If I sell my home for less than the mortgage amount which is $390,000, what can I buy that is comparable in size and location but with a smaller mortgage payment.”  

 Well, the mortgage payment on their current home is around $2400.  If they short sell their home, they could buy a comparable home for $250,000 with a mortgage payment of approximately $1500 assuming they could still get a loan.  The difference is $900 and that is a tremendous savings in payment amount for a comparable property.  

The unfortunate situation that is occuring here in the Las Vegas real estate market is that over 50% of the home owners facing foreclosure never talk to their real estate agent, their lender, or a credit counselor.     A foreclosure can stay on your credit for 7 years.  A short sale is considered a SETTLED DEBT, and is much less harmful to your credit.

We are currently checking with local lenders and banks to find out how they will handle this type of situation.   We will report the results of our research this coming week.   

Filed under: LAS VEGAS MARKET