A Short Sale is when a property is sold for less than what is owed to the mortgage lenders. A lender will consider the offer for the property and the financial condition of the borrower when deciding to approve a Short Sale.
It is often advantageous for lenders to consider Short Sales because they usually net more from the Short Sale than if they have to go through the foreclosure process to take the property and then sell it on their own. It may also be beneficial for a homeowner to Short Sale a property. With most homes in the Las Vegas area being “upside down”, a Short Sale can allow a homeowner to relieve the burden of carrying a property that they can not afford or a property that does not make sense to keep. A completed Short Sale may offer many advantages over the options of foreclosure, loan modification or bankruptcy.
A Short Sale may not necessarily be the best option for everyone. There are, however, many potential advantages that a Short Sale may provide, such as: Allowing a homeowner to get rid of an “upside down” property; Avoiding the damaging effects of a foreclosure if you are going to lose a property; Possibly avoiding a deficiency judgment that may arise from a foreclosure; Bringing finality to the stressful situation of dealing with troubled finances; and Avoiding Bankruptcy, which may be important if a homeowner is not burdened by other debts or if the homeowner is averse to this option.
Lenders are allowing properties to be sold for less that what is owed, allowing homeowners to escape from their “upside down” properties. The key is having a team of experienced professionals who know how to work with lenders to get these deals approved.
Las Vegas Real Estate & Investments (LVREI) is dedicated to helping homeowners with their real estate needs. We are a company comprised of professionals who are experienced in getting Short Sales approved and closed!