Category Archive : Short Sales

Updated on 09/19/11 –  Short Sales can be difficult to complete and quite confusing for buyers and sellers.  To help you to better understand the Short Sale Process, we have completed a list of commonly asked questions along with information we need when handling a short sale in Las Vegas.

Whose names are on the loan?

It is important for us to know everyone who will be involved in the short sale.

Do I have to include my spouse on all the paperwork if they are not on the loan?

Generally not, unless advised differently by your attorney. In Nevada however, if your spouse is on legal title to the property, they will be included on the listing paperwork.

Can I sign the paperwork myself if there are others on title with me?

No, all persons who are on title must sign listing paperwork here in the State of Nevada.

Why are you considering a short sale?

Performing a short sale should be the last action before letting a property fall into foreclosure. You should have already explored other workout options first such as loan modifications. Once it is clear that other options will not work for you, it is time to look seriously at doing a short sale. Do not delay; take action so that you will be left with enough time to complete a short sale prior to foreclosure.

How much time do I have before I get foreclosed upon once I am in default?

Well, good question. It depends on the individual banks involved as well as State your property is located. Here in Nevada, you have 3 months and twenty days once a Notice of Default (the official filing a lender makes with the County Recorder) has been filed. After this time period, a Trustee Sale is often scheduled within 30 days. Your bank usually will usually get your property at the Trustee’s Sale. Technically, you are in default one day after you miss a payment, but it usually takes a couple of months before a Notice of Default is filed. The more time we have as real estate agents, to conduct a short sale, the better chance you have, just make certain you have exhausted other options prior to attempting the short sale

Why do you keep saying I need to try other alternatives to a short sale PRIOR to listing my home as a short sale?

A short sale is simply another workout option to a bank, just as a loan modification, forbearance or refinance, and as far as the bank is concerned, the least desirable. A bank would always prefer to do a loan mod instead of a short sale. Once you start a short sale and try another workout option, the bank will suspend the short sale in favor of the other option, leaving the listing agent, buyers with offers on the property and anyone else involved in a transaction, in a lurch. It will take at least 30 days to get an answer on a loan mod. By that time, all the data and offers on a short sale will be obsolete. The bank will request all new paperwork to re-initiate the short sale. Bottom line is you can only do on workout option at a time.

Will banks let anyone who is behind do a short sale?

Not necessarily. A bank usually requires a hardship. Examples of hardship are job loss, pay cuts and underemployment, mortgage payments that have escalated beyond what a borrower can now pay, job transfer, an increase of the monthly obligations of the borrower such as having additional dependants to support. Normally, a person would simply sell to get out of this financial hardship but under current market conditions, that is simply usually possible as many people are under water in their mortgages.

If I file a bankruptcy, how would that affect the ability for me to sell my home on a short sale?

Filing for bankruptcy during your short sale will only delay the sale.  You will need to seek court approval to sell the home.  In some cases, it could take 3 or more months to get a court date and may jeopardize the short sale.

Should I continue to pay my mortgage while attempting a short sale?

As a REALTOR, I cannot advise someone not to pay their mortgage. That is up to you. My job is to get the home under contract, negotiate with your lien holders to approve a short payoff, and get the home successfully closed.

Do I have to be behind on my payments to do a short sale?

Usually, yes. It does depend on the bank. Some won’t even look at a short sale application without being behind, others simply want an applicant to be behind prior to the home closing, so as long as one payment is missed prior to a short sale approval letter being issued they’re fine with it.

Can I do my own short sale?

Very unlikely, banks prefer professional REALTORS being  involved.

Who else should I talk to about doing a short sale?

A good real estate attorney as well as a CPA should be consulted as well. There are tax ramifications and potential deficiencies that may result from a short sale. REALTORs cannot give professional advice in these areas.

I think I need to do a short sale on the home in which I live. How long can I stay there?

You probably should begin to prepare to leave and not plan on trying to time it perfectly so you can stay right up until foreclosure. For one, most homes are more difficult to sell with owners or tenants present. They usually limit the showing times, do not keep the property in prime show condition, and frequently intimidate buyers who “feel guilty” about the sellers situation preventing them to focus on the real task of evaluating the home for themselves. Your REALTOR is able to guide you on the State statutes governing foreclosures. They should also be in contact with your lender and should know when a foreclosure is imminent.

I have tenants, how does this affect them?

You should be honest with them, and depending on their lease, they may have to move out early to accommodate a buyer who wants to occupy right away or most certainly, if the home is foreclosed. A lease would have to be honored by the new buyer, but that buyer might simply choose not to move forward with making an offer if there is a tenant. You need a buyer more than you need a tenant, so find an equitable solution!

I am going to vacate the property. Do I have to maintain the property?

The best looking homes normally sell the quickest. If you can afford to maintain basic utilities that will generally aid your agent’s ability to sell the home.

What are some of the things my REALTOR will need to know in order to help me with my short sale?

They will need to know all of the liens against a property. Most important will be the number of banks involved. You should inform your REALTOR if you have been paying your home owner association dues. Other liens might include property taxes, IRS tax liens, mechanic’s liens, child support judgments, SID/LID assessments, sewer, water, trash bills, etc. Avoid unnecessary liens such as inexpensive HOA (home owner association) dues. Keep paying them if possible. In Nevada, HOA’s are in a first lien position which means they get paid even before the banks do! The more liens that are filed against a property, the more difficult it is to successfully close a short sale. A lien holding bank allows only so much of the proceeds of the sale to pay off closing costs, liens etc. If the costs are too high, the bank will tell the REALTOR to find more money. That may mean, getting a buyer to pay a higher purchase price. If the buyer in this situation is unwilling, the deal will die, which is bad news for the seller.

Other items your REALTOR will need to know.

The names and number of banks on your mortgage; the amount of your monthly payment; how much you owe on the property.

I hear that 2nd mortgages can really disrupt a short sale.

In our current real estate market in Nevada, where homeowners are so far under water, most 2nd mortgage holders have little hope to recover much of the money the lent. We rarely see 2nd mortgage initiate foreclosure proceedings as they will probably receive no money from the foreclosure. Negotiations are crucial with them in order to have them cooperate, even though they have little financial incentive.

How is the REALTOR paid and what are the costs to do a short sale?

REALTORS are paid from the proceeds of the sale by the seller’s bank. All costs such as taxes, commissions, escrow fees etc. are taken off the top. The selling bank will cap the fees. If the sale price is insufficient to cover the fees and still net the bank what it feels the property is worth, it will not approve the sale. Sometimes banks want a seller  to contribute money or some other form of consideration (usually in the form of a promissory note). If you have equity in another property, they may look to have you access that equity if they determine they need more money to approve the sale. You will have to determine on your own whether or not it makes sense. In any event, you will not know what they will require until you are in negotiations with your bank.

What if the buyer wants me to contribute to their closing costs?

Your REALTOR will write in the contract that any seller concessions are subject to the approval of the lien holding bank. If they approve the closing costs, you’re set. If the don’t approve and  more money is needed, you will either have to get the buyer lower their demand for costs or you might want to contribute out of pocket if you can afford it. Remember, that you will be walking away from a very large debt and if kicking in some money to make the deal happen, you may want to consider it.

What is a deficiency?

The deficiency amount is equal to the complete amount of indebtedness including all late fees, attorney costs, expenses (if applicable) less the amount received by the lender from the sale (net proceeds after closing costs). The goal of the short sale negotiations in addition to the approval is to obtain a full release from the bank in that they will not pursue a deficiency.

I refinanced recently and pulled out some equity.

This is where you may be most vulnerable for a bank to pursue a deficiency. There is a difference between the debt to purchase or improve a property, and the debt pulled out and simply spent. The latter form is often treated just like credit card debt and a bank may consider obtaining a judgment for that debt. It is critical you consult an attorney as well as a tax professional familiar with short sales if this situation applies to you. You always want to minimize your obligations, so

Why not just let my home go into foreclosure if I am going to still have potential liabilities?

Several reasons: first, an approved short sale, properly negotiated and reviewed by an attorney, usually means that the debt is satisfied. Banks will generally report that the debt was paid short of what was owed, but it will show as paid. Second, it is preferable to avoid a foreclosure on your record. Fannie Mae has indicated that it will be possible to obtain a loan from them after two years while a foreclosure is five years. Your goal is to satisfy your debt obligations even though you are facing a financial hardship. Doing nothing is usually more destructive.

If you have a question that we did not answer, please contact us at 702.376.0088 and we can discuss your short sale questions.

Las Vegas tops cities for upside down mortgages, which is the reason why over 35% of homes for sale in the Las Vegas Valley are Short Sales.  A short sale is when the Lender/Bank agrees to take less than what is owed on the mortgage, commonly called a short payoff.  Completing a short sale is a better option than letting your home go into foreclosure.  As a foreclosure will have more of a negative affect on your credit than a short sale.

If you decide to sell your home as a short sale, we recommend you consult with a Las Vegas Real Estate Attorney and a CPA as there can be legal and tax implications with a short sale.

With home prices dropping again in April, short sales will continue to be a large portion of the inventory for sale in Las Vegas.  Just a few years ago in June 2006, the median home price was $315,000 and now sits at a little over $141,000.  There’s no wonder why majority of Las Vegas Homeowners are upside down on their home.

If you need to sell your Las Vegas Home but are upside down and are not sure where to turn, contact Sena & Associates today at 702.376.0088.  We will explain the short sale process to you and then recommend why our preferred Real Estate Attorney with Paladin Legal Center should handle the short sale negotiations.

Las Vegas Loan Modifications

Many Las Vegas homeowners are upside down or behind on their mortgage payments.  We receive several questions from our clients about how they can avoid foreclosure by doing a loan modification or short sale.

While the politics, procedures, and guidelines for a successful Las Vegas loan modification literally change every day, per our short sale / loan modification attorney, there are still some basic fundamentals that you can be aware of.

As Las Vegas short sale specialists, we work closely with a local law firm to ensure our clients’ individual cases are handled by a legal expert who is bound by law to protect their financial interests vs the bank’s.

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Las Vegas Loan Modification FAQ

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What is a Loan Modification?

A loan modification is simply a restructuring of the current loan terms between the borrower and the lender.  Lower interest rates, longer term, principal reduction, or a principal forbearance are a few examples of how a loan modification can help a homeowner lower their monthly mortgage payment.

Why would agree to a loan modification?

The main purpose of a loan modification is to reach a mutually beneficial agreement between a lender and borrower that prevents foreclosure or future payment defaults.  With the rapid decrease in Las Vegas property values, prolonged sale times due to an over abundance of listing inventory, and the tightening up of mortgage guidelines for new purchases, lenders that acquire properties through foreclosure stand to lose significantly more money than potentially working out a new payment arrangement with a current borrower.

How do I qualify for a Las Vegas loan modification?

This is slightly a tricky question, so please refer to the legal disclaimer below.

The Making Home Affordable Modification program is a government sponsored loan modification plan that was designed to help up to 9 million American homeowners avoid foreclosure by reducing their monthly mortgage payments to something more affordable for a five year term.

To qualify for the Obama Modification Plan, you need to live in the home you are modifying, the balance cannot be more than $729,750 for a single unit, there has to be a significant hardship, and the possibility of foreclosure has to be imminent.  Since this is such a new program, the various servicers, lenders, and other financial institutions are still learning how to adjust with the guidelines.

Qualifying for any other form of a loan modification that does not fall under the Making Home Affordable guidelines requires a negotiation process between the borrower, investors, and generally a servicer who may act as the middle filter.  Since the lender / servicer’s main priority is to protect their investor’s financial interests, it is important to be familiar with any violations in the real estate or mortgage contract that potentially contributed towards your current financial hardship.

To answer this question more specifically, qualifying for a loan modification is a process that involves proving to the lender / servicer that you have the ability to make future mortgage payments on time based on a calculation of  a new rate, term, principal amount, and your income, assets, and employment.

We are finding that equity, or the amount a home is underwater, does impact a lender / servicer’s decision as to whether or not they would approve a borrower for a loan modification or short sale.

Do I need to be  late on my mortgage to qualify for a loan modification?

No, under the Making Home Affordable Modification Program, the guidelines state the a borrower does not have to be late on their mortgage to qualify for a loan modification.  If your lender has forced you to go 90 days past due before they are willing to start the modification negotiation process, it is important to speak with an attorney about your legal recourse.

What if I am already in foreclosure?

Foreclosure can be postponed while a loan modification is attempted, but it is vital to file the proper paperwork as soon as possible.

What if I have assets, can I still get approved for a loan modification?

Since most lenders weigh their decision for a loan modification based on the threat of imminent foreclosure, having a significant amount of available capital does not strengthen your case.  However, there are several other factors that can be taken into consideration, including monthly budget, lender or RESPA violations, employment and income.

Will the lender require an appraisal or inspection?

Yes, the lender may require that your property is inspected to determine the livable condition as well as the market value.

Can I do a loan modification on my own?

Yes, it is possible to work out a solution directly with your lender / servicer that lowers your monthly payment.  Just be aware of any hidden language in the new contract that requires you to sign away your legal rights to litigation.  Other things to pay close attention to are the terms of the new loan, whether or not your mortgage becomes a recourse vs non-recourse loan, if there are any balloon payments 15 – 20 years out, and the difference between a lower rate vs a longer term.  There are literally hundreds of details that can mean the difference between the perception of a lower payment vs an actual fair loan modification.

What if I have already failed on my own, is there still hope with the help of an attorney?

Yes, most homeowners or real estate professionals are not well versed in real estate / mortgage contract law.  Actually,  most of the loss mitigation consultants or case managers at these large financial institutions are still learning the process.  Knowing your legal rights, how to write a hardship letter, and who makes the final decision can give you a significant advantage for a successful loan workout.

A complete forensic loan audit may uncover several lender violations that your bank may not want to address court.

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*Legal Disclaimer – Please keep in mind that we are a real estate company that specializes in listing and marketing Las Vegas short sales.  Since there are several legal logistics and details that apply to each individual scenario, we refer our short sale clients to a trusted local law firm that understands real estate / mortgage contract law.  As a result of our trusted relationship, they have offered to give our clients free consultations to answer any personal  loan modification or short sale questions.

Please contact us @ 702-376-0088 for more information.  Since they do place first priority on homeowners who need immediate help, we’d like to please ask for your cooperation and to contact us to see if we can answer some basic questions and get you set up prior to meeting with them.  We will respect your privacy and understand how sensitive every one’s individual situation can be.

I have been receiving numerous phone calls and emails asking if a Loan Modification will affect your credit.  With so many inquiries on this topic, I am assuming there are others that would like to know the answer to this question.  Loan Modifications do not affect your credit.

If you are current in your mortgage payments, a Loan Modification will not affect your credit.

A loan modification is simply a re-negotiation of the terms of your mortgage with your current lender or lenders.  Whether it is a reduced interest rate, longer term, forbearance or a principal reduction, the main objective of a loan modification is to create an affordable mortgage payment that works for the borrower’s current financial scenario.  A loan modification is a contractual agreement to change the terms of the existing mortgage, and because there is no effect on the timing or non-payment of the loan, the credit reporting agencies simply do not see the changes, much less report on them.

If you are currently behind more than 30 days on your mortgage payment, chances are your Lender has already reported you to the credit agencies and your score now reflects a derogatory item.  Completing a Loan Modification might actually help you become current with your mortgage payments and place you in a payment that you can actually afford.  Bringing your mortgage payment current as quickly as possible will minimize the damage to your credit.

Establishing a timely mortgage payment history may actually help improve credit scores, especially if it makes things easier to pay other monthly credit obligations.

If you think a Loan Modification might work for you, I highly recommend having an Attorney with the Paladin Legal Advocacy Center represent you.  Call today to make an appointment for a free consultation at 702.376.0088 or you can attend one of their free Loan Modification Seminars held every Wednesday at 6 pm.

As a busy short sale listing agent here in Las Vegas, I am asked this question all the time by prospective sellers. Legitimate sellers in a short sale are usually in a serious financial bind, but I do recommend that they keep their home owner association (HOA) dues current whenever possible.

One key to getting a short sale to close successfully is to limit the number of liens that will be recorded against the property.

Sellers already have at least one mortgage to clear, many have two. Having to extra liens is time consuming and can endanger the viability of a short sale.

Remember the order of priority when it comes to liens on a property; HOA’s, Taxes, 1st mortgage, 2nd mortgage holder, and any judgments for additional debt placed against the property. While this is the pecking order, remember that ALL must be cleared in order to transfer the property to a buyer. The 1st mortgage will get the lion’s share of the proceeds, but even their portion is a negotiated settlement. Junior liens further down the chain generally receive even worse settlements, but an HOA and the government will get exactly what is owed to them.

If a lien is placed on the property for HOA dues and fines unpaid, the listing agent will be forced to try and clear yet another lien, and usually has to deal with collection agencies to do it. I am sure all of you are aware of what it is like to deal with that lot. For most people the HOA is a relatively small cost and letting it spiral out of control into a large debt is often unnecessary and can threaten your short sale’s ability to close.

If you have a condo or something similar with very high fees, then you’ll just have to make the call whether or not you feel it is worth it to keep them current, but the majority of sellers should not let them lapse, considering their cost is usually modest.

Anyone that has been involved in a short sale in Las Vegas knows it can take a very long time to close and even then, there is no guarantee it will.  From the time we enter into a short transaction, whether it is with a buyer or seller, we explain the process so they know what to expect.  Even though we thoroughly explain the short sale process to our clients, we still get asked 30-60 days into the transaction, “Why does it take so long to close a short sale?”  I can understand their frustration and disbelief that it can actually take a bank over 60-120 days to respond to an offer.

So why does it take so long for a bank to approve a short sale?  Well, it really depends on the Bank that is holding the mortgage.  Some banks can get a short sale approved within 45-60 days but for the most part most get approved within 60-90 days.  One of the reason it takes so long is the bank requires copies of all bank statements, tax returns, w-2s, and other supporting documents to verify that the homeowners cannot afford to keep making their payment and have a financial hardship.  Once this paperwork is received, it is reviewed by a loss mitigation specialist.  After they review the paperwork and BPO (broker priced opinion), a fair market value of the home, and it’s approved, it just moves to the next step.

The next step is having the investors sign off.  This may include a long list of investors who own pieces of this mortgage loan.  If this is the case, each investor must sign off on the short sale.  You can imagine these investors aren’t very happy about taking a loss on their investment, so don’t expect them to go out of their way to approve the short sale.  If and when the investors sign off, you just may have your approval.

Once we have the approval, the seller could still be held responsible for the balance but this is another topic we will discuss in our next series, Las Vegas Short Sales: Consequences to the Seller.

If you are a homeowner in Las Vegas and have questions about selling your home as a short sale, feel free to give us a call for a free consultation at 702.376.0088.

Because there may be serious tax and/or legal consequences to the seller in a short sale transaction, we recommend you contact an Attorney and/or a CPA for legal and tax advice.  We do not provide legal or tax advice!

What is a Loan Modification and does it fit the needs of homeowners who cannot afford their mortgage payment and who owe  more on their mortgage than the home is valued?

“A Loan Modification is a permanent change in one or more of the terms of a mortgagor’s loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.”

In the State of Nevada, an Attorney should negotiate on the behalf of a homeowner to get a loan modification approved.  There are those that aren’t Attorneys that attempt to help homeowners, which is fine,  but it’s against the law for them to charge you any up front fees.

A Las Vegas Homeowner does not have to be late on a payment in order to be approved for a loan modification.  However; I have seen some Lenders deny a Loan Modification because the homeowners weren’t late on their mortgage, so it does come down to who your lender is.

We work with several reputable Attorney’s in Las Vegas they we can recommend to you if you are in need of a Loan Modification for your Las Vegas Home Loan.  We can be reached at 702.838.7522 or complete our contact form and one of our representatives will contact you for a private consultation.

Buyers Beware! The disturbing trend of low ball listings in Las Vegas!

A disturbing practice I am seeing more and more of lately is the low ball listing of Las Vegas short sale/foreclosed properties. A low ball listing is a listing that is priced, by the Listing Agent, SUBSTANCIALLY below what a common sense comparative market analysis says the property is really worth.

I have spoke to many Las Vegas Listing Agents and asked them why they priced their listings so artificially low. They tell me they were not getting any offers at a higher (more realistic) price. OK, I understand that logic but are they really helping to sell the listing any faster with an unrealistic price.

I would argue that low balling the listing doesn’t help sell the property any quicker and in fact hurts the chances of a sale for the following reasons:

1. Buyer expectations – The Buyer sees the artificially low price and thinks they can get the house for that amount. Even after it is explained that the Seller’s Bank has the final say on what they will or will not accept, this is a difficult psychological hurdle to latter overcome.

 

2. Wasted Time – So the low offer is in and the waiting begins. Banks are not known for quick decisions and several weeks could go by before they respond to the offer. During this time the Listing Agent is required to place the property as Contingent in the Multiple Listing Service (MLS). This could lessen the chance of the property being shown since other potential Buyers could see the property as possibly being sold already. It is also against Nevada law for the Listing Agent to submit other offers while the first offer is pending review by the Bank. Many times the offer will come back from the bank 10% or more higher than what the Listing Agent had it listed for. This tends to anger the Buyer and often causes a complete breakdown of negotiations.

The best way to mitigate against this practice is to educate the Buyer in advance. Las Vegas Buyer’s Agents need to prepare their clients for the possibility of a counter offer above the listing price. If the comparative market analysis shows that the property is worth more than the asking price, share this with your client, it might be what saves the deal in the end.

Las Vegas short sales have always been around but in general were pretty rare. Usually, someone would endure a personal or professional hardship and had to sell their home. Perhaps the home had depreciated a bit and factoring in selling costs, the homeowner found they were unable to cover these costs. The homeowner would then contact their Realtor and assuming they could find a qualified Realtor, they would work with their bank and the bank might take a small loss to avoid taking the home in a foreclosure.

Back in those days however, exotic mortgage products were not the norm. Recently, we have had mortgages such as interest-only, Alt-A, negative amortization loans, as well as having a 2nd even 3rd mortgages against the house which allowed a normally unqualified buyer to purchase a home. The negotiation with the bank was a little more straight-forward back then. Fast forward to 2009 where depreciation on real estate is rampant and whole regions have been has seen home prices down 30-50%, unprecedented since the Great Depression, when one considers the breadth of scale.

The first step is to accurately and HONESTLY take a look at your finances. Set up a place in a corner of the house; pull out your bills and a blank sheet of paper. Write out your all your monthly obligations as well as your gross monthly income. If you are under and it isn’t going to change just by modifying your lifestyle, you have some hard decisions to make. You’ll have to justify your situation as a hardship which will prevent you from recovering in the eyes of your bank. A Realtor proficient in short sales will be able to guide you with this process.

Talk with your lender and if they can modify your loan in a way that makes sense both near-term and long-term, that might make sense for you. Be very aware of how they will want to address the issue of future equity in your home when hopefully, prices might actually increase. Also, keep mind there is always a time crunch. Banks do not move fast except when agreeing to accept your money! The clock is ticking against foreclosure. When you’re going to be behind or certainly when you’re already behind, you cannot afford to spend all your time trying to do a loan modification and then not leave any time to attempt a short sale.

Next talk to a CPA or tax professional that is familiar with the tax ramifications of doing a short sale as well as being responsible for any potential deficiencies against your mortgage loss. If the CPA advises you that a short sale makes sense from their prospective, you can begin start scouting for a qualified Realtor.

The good news is that the entire industry is seeing the benefits of doing a short sale instead of foreclosure. Banks avoid having to take the property back in foreclosure. The home is only going to sell for what the market will bear anyway, so why they would want to go through the extra expense of having to own the home and re-sell it is baffling. The new bank generating the loan (if they didn’t pay cash) now has a new customer. The buyer got a great deal, and I am quite sure most of the neighbors are happy about having a viable owner as opposed to a distressed one.

Please check my next blog article when I will give you industry insider techniques to interview and select the right Realtor to successfully manage your short sale.

Paul  Rowe is 5 year veteran of the Las Vegas real estate market, having seen both the incredible highs and now the lows of 2008 and 2009.

I don’t mean to rant but Las Vegas Real Estate Agents that have no experience in listing short sales make it difficult to get the short sale approved.  In this market, short sales are very prevalent and require an agent that has experience handling short sales.  Not all short sales will close but an agent experienced in short sales will start the short sale process just as soon as they list the home which increases the chances of getting the home sold and sold much quicker.

I currently have several deals with listing agents that do not know what they are doing and it’s going to cause my buyer’s to walk away from the transaction.  Out of all the short sale deals that I have done this year, there was only 1 listing agent that was on top of everything and it was one of the reasons why our short sale transaction closed within 45 days.

When we take a short sale listing, we go through the whole process with our client so they know exactly what to expect during the short sale process.  We submit our short sale package to the bank/lender within 48 hours of taking the listing.  We continuously contact the bank/lender to get our paperwork processed as quickly as possible to ensure we can move quickly as soon as we get an offer.

If you are thinking of selling your Las Vegas Home, make sure you contact Sena & Associates for a free consultation at 702.376.0088.

Ok, you have been researching Las Vegas short sales on Google, Suze Orman, talking with friends etc. You know that you may have a way out of a dreadful situation and avoid foreclosure. You know you need to take action, but can you? Yes you can! Many people never get past the research phase because they are afraid to reach out and seek the help they need.

First, talk to your tax professional. If you don’t have one, get one! You need to know the ramifications of doing a short sale. You must get the facts on what potential tax liabilities you might owe and what strategies your tax professional can suggest to mitigate any tax burden.

For those of us who live in “deficiency” States such as Nevada where I live, you need to know if a lender can obtain a judgment against you for any portion of the debt that is lost during a short sale by a lender. Recent bills passed by Congress have made it much easier for homeowners doing short sales to avoid deficiencies.

Hire a Las Vegas Realtor who specializes or at the least has significant experience in short sales. The days of hiring Aunt Sallie or your girlfriend’s brother to be your Realtor because you want to do them a favor or because you’ll feel guilty at the next Thanksgiving Day dinner if you don’t, have been suspended during this horrible market for sellers. You need a professional who will know how to deal with the bank bureaucracies as well as run the real estate portion of a short sale.

Remember your Realtor has four phases to manage:

1. List the property.
2. Negotiate the settlement on your behalf with your bank(s).
3. Manage the offers and negotiate with potential buyers.
4. Manage a good portion of the escrow as there will be heavy coordination between the bank, the listing agent and title. If you’re a buyer’s agent, encourage your buyer to let the listing agent choose title, as they are the ones that have most of the information related to the transaction and are performing the negotiations with the bank.

Remember sellers, the key to moving on beyond your own research is seeking professionals who can help you. They have facts and experience necessary to guide you to your ultimate goal of a successful short sale.

You can contact us at 702.376.0088 to set up a free consultation and we can discuss the short sale process.

If you have made the decision to sell your Las Vegas Home after looking at all other options such as Loan Modification than the next step is finding an experienced agent specializing in short sales.  Short Sales require a real estate agent to not only list your home, market your home but negotiate on your behalf with your lenders to accept an offer for less than you owe on your mortgage. If you have a 1st Mortgage and a 2nd Mortgage it can be even more of a challenge, which is why your real estate agent needs to specialize in short sales.

When you interview perspective agents, make sure you ask them how many short sales they have sold in the last 6 months and how many where they actually represented the seller. There is a difference in selling a short sale when you represent the buyer as opposed to representing the seller.  Make sure you ask them what you can expect during the process and what they will do to ensure you get your home sold.

You can contact us at 702.376.0088 to set up a free consultation and we can discuss the process of selling your Las Vegas Home.