Las Vegas Short Sales

I’ve Received A Notice Of Default – is it Too Late to Begin a Short Sale?

Not necessarily. In many cases you may still have time to list your property, get an offer and submit the paperwork to your bank to start the short sale process. Usually, once a short sale has been filed with your bank with all of the necessary documents, many banks will postpone the foreclosure and consider the short sale. Time is of essence, so the sooner you begin, the sooner the foreclosure can be delayed.

Why Would You Choose To Short Sale Your Home?

When short selling your home you are asking your bank to release you from any deficiency judgments. This is always negotiable with a short sale. If the bank forecloses on your home, they will automatically have the right to pursue a judgment. Also, a foreclosure will have a stronger effect on your credit rating – much more than a short sale.

Starting The Short Sale Process

To begin the short sale journey, the key is finding a real estate professional experienced in short sales in Las Vegas who can guide you through the process each and every step of the way, from beginning to end. Once you have found a real estate agent, you’ll need to sign a 3rd Party Authorization which allows them to speak to your bank on your behalf throughout the short sale process. At this point, you should find out from your bank if you qualify for either the HAFA program or Home Affordable Foreclosure Alternate. There are many benefits to this program outside of the standard short sale process. Speak to your real estate agent about this today.

Next, you will need to prepare your home to list for sale as well as gathering the necessary paperwork that will be required by the bank. Once you have received an offer on your home, the process will begin. The key to a successful short sale transaction is submitting the paperwork as accurate and completely as possible and submitting the best possible offer to the bank. Any one thing that is not complete or is missing will only delay the sale. A good real estate agent will submit accurate paperwork and will be able to detect a strong offer.

How Long Will A Short Sale Take?

Every short sale transaction is unique upon itself compared to other seller situations. Things to be considered are how many loans on the property and as well as how quickly you and your agent respond to the banks needs and requests. Also, how quickly you list your home and get a strong offer on your home will all be a factor for completing a successful short sale transaction. Though there is no definite answer, generally short sales can take anywhere from 30 days and in some cases, up to 12 months.

Can I Stay In My Home During The Process?

Yes, in most cases, you may be able to reside in your home until the short sale is completed. If you remain in your home and are unable to make your monthly mortgage payment, it’s highly recommended that you remain current on all HOA and utility bills. These companies will tack a lien on your property if you fall behind. Liens on properties going through a short sale can delay the transaction, if not prohibit the entire transaction from closing.

What Your Lender Requires To Initiate a Short Sale?

• Hardship letter
• Last 2 Years Tax Returns
• Most recent bank statements
• Most recent paycheck stubs
• Financial Worksheet
• Profit & Loss Statement (if self employed)

Each bank has their own short sale requirements, therefore requested documents may vary from bank to bank. These documents are the most commonly requested.

What Is Considered A Hardship?

A hardship need not be a financial one. Most people and banks understand a financial hardship, but another reason for a hardship can be relocation, medical, divorce, perhaps your home has stairs which you can no longer climb, etc. There are many reasons for a hardship causing a reason to sell your home.

What If My Short Sale Is Not Approved?

The last thing banks want right now is another foreclosure. Many banks are offering options to the homeowner. If your short sale has been denied, you and your agent need to find out why, whether it was due to price or missing paperwork, or perhaps your hardship wasn’t sufficient. Whatever the reason for the denial, your next step is to call your bank and ask for any other options available to you other than foreclosure. Some banks may offer a deed in lieu of foreclosure.

Will You Be Liable For Any Deficiency?

Possibly. Negotiating a deficiency is key to a short sale transaction. When negotiating a short sale, your agent and you can request that the bank waive its right to a deficiency judgment. There are three scenarios for a bank to handle a deficiency. They may attempt to collect the balance from the seller after the deal closes, they may require the seller to sign a personal note to pay the deficiency or they may cancel the entire deficiency completely.

Government Programs To Know About:

Home Affordable Refinance :

Homeowners with a mortgage of 105% or less of the home’s value, the homeowners may still be able to refinance at a lower rate.

Home Affordable Unemployment Program:

Homeowners that are currently unemployed, may qualify for suspended payments while they look for new employment.

Home Affordable Modification Program (HAMP):

Homeowners with mortgage payments that are more than 31% of their household monthly income, may qualify for a loan modification.

Home Affordable Second Lien Modification:

Homeowners that have permanently modified the first mortgage under HAMP, may still receive help for their home equity loan or home equity line of credit (HELOC).

Home Affordable Foreclosure Alternatives (HAFA):

A government program which offers homeowners alternatives for settling your mortgage debt outside of foreclosure.