A Las Vegas Short Sale is a specialized sale that enables a homeowner to sell a home for less than what they owe on it, while they are in the home. The short sale enables the homeowner to avoid the stigma of having a foreclosure on their credit record and in some cases avoid bankruptcy.
Las Vegas Short Sale From Bank’s Perspective
From the bank’s perspective a Las Vegas Short Sale is simply a negotiated settlement that occurs when the bank agrees to accept less than the amount owed on a home, that is a viable alternative to foreclosure.
We believe the larger banks are aggressively taking a “hard look” at short sales as an alternative to foreclosures. Here’s why:
- A Las Vegas Short Sale saves the bank from being forced to foreclose on the home, offsetting a tremendous amount of time, property management, labor, paperwork and fees.
- Many borrowers may not qualify for modified loans, especially in these challenging times. Banks are very much aware of this and are looking at short sales as the best alternative.
- From a banks perspective, foreclosing on a home is an expensive proposition. It costs a bank more to foreclose on a home. The carrying costs in some cases can equate to 1.0% to 1.25% of the value of the home for each month the home is in foreclosure.
- A Las Vegas Short Sale usually keeps the homeowner in the home the home is maintained and not damaged.
Banks Embracing Short Sales
We believe many major banks in our market are assessing their loan portfolios to determine which homes may be well suited for a short sale and then moving forward on this process with the homeowner.
A good number of these banks have a large number of foreclosures already listed and are seeing these homes sell very quickly, especially in the $50-200K price range. As a result, they are realizing a short sale will sell quickly and save them money and save the home owner’s credit. Short sales may be a much more viable and better option than taking a home into foreclosure.
To summarize, we see a strategic shift occurring in the Las Vegas market – it makes sense financially for banks and work directly with the homeowner in the home to facilitate a Las Vegas Short Sale.
