The U.S. Treasure Department has just released a new plan to accelerate and motivate financial institutions to utilize Short Sales as a way for families to avoid foreclosure. We think this is a great thing for homeowners and the Las Vegas Real Estate Market and throughout the rest of the USA! This legislation represents a big step in the right direction for all parties!
Short Sales Background
Currently about 3 out of 4 houses that start the short sale process end up failing and falling into foreclosure, with the homeowner taking a huge ding on their credit and the bank being forced to take possession of the home. In the past the process has taken 6-8 months on average to close, which has been frustrating to all parties, which in turn meant many would not even consider a short sale as an option.
Legislation Highlights
Up until now the Short Sales process has been labor intensive for all parties and time consuming as well, which is not a good thing in today’s economy. This new legislation forces the lenders to give a positive or negative answer once an offer has been made within ten days; this is huge for all parties, as it injects a sense of urgency into the process.
The legislation also includes a moving allowance, incentives for sellers and lenders, new commission rules and a stipulation that releases sellers from debt liabilities. We expect more details will be announced in the next few days.
Great for All Parties
We think this will have a positive impact on the Las Vegas Real Estate market in general. Homeowners will have a tangible option to being forced into foreclosure, financial institutions will have “motivation” to embrace the short sales process, homebuyers and investors will have access to homes that are in better shape, as the original occupant will still be in them and we will have more available inventory of homes in the Las Vegas Real Estate Market!
[...] Feds Act as Market Motivators!! [...]