It is true that many people have given up on the thought of ever getting out from under their massively “underwater home” in Las Vegas, Nevada but there are some signs that the hopeless times may have come to pass. Everyone wants to pay their mortgage and keep their commitment but there comes a time when reality hits us in the face and we have to look at our real estate as a business entity and make business like decisions regarding our future. In Las Vegas now is the time to take that look at your property and its value and realistically assess the changes of it ever coming back up to the amount of your mortgage. With the drop in property values hitting somewhere around 60% in certain areas your home value will have to more than double over the next 10 years for you to get back to even. In most cases even when the real estate market hits bottom and turns around this is not likely to happen. What you will be doing is paying to live in your house with no chance of ever having equity.
What does this mean to you? This means that you will get to pay for the right to live in your home like a renter with all the negatives of being an owner. You will still get to pay taxes, insurance and all the maintenance and up keep without any of the benefits of increasing equity and without the hope of having your home as a nest egg for retirement. In all cases it really is a losing proposition when you see that a house down the street can be purchased for 1/2 the cost of your current mortgage you can be assured that their is no shame in making a business decision about going for a short sale. Regardless of what people say or what you read in the media, there is no law that says you can’t renegotiate your mortgage or opt for a short sale. There is no law that says you are a terrible person for wanting to put your money into something worthwhile that you want to see at least a modest return on your money. The banks have relied on the dedication and commitment of American borrowers for years but now the tables have turned and expecting someone to keep a home that is worth 60% less than its market value makes little sense to anyone. The good news is that it may finally not be making sense to the banks.
It seems the banks are realizing that it is much better to negotiate a short sale and let people move on with their lives without the major cloud of debt over their head. Rational thought seems to be prevailing in all areas of the housing market. The banks are realizing that a short sale, although a loss, is less of a loss than a foreclosure. They are also realizing that the short sale owner quite possible can be a suitable buyer for another property if they are not saddled with the balance of the debt after the short sale. It is not a perfect situation for either side but it seems to be what the banks are willing to do and what may be to their benefit and to that of many underwater home owners.
If you are in a home that is underwater as most people are in Las Vegas, NV there may be hope for you. The banks may be realizing that more underwater you are in your home the more of problem they have in dealing with the underlying collateral. If you have considered selling or moving but have held back because of your lack of equity, now is the time to check out the possibilities of doing a short sale.
A short sale is when you sell your property for the current market value while working out a deal with the bank to accept this as payoff in full for your mortgage. In many cases the banks are willing to do this in order to clear their books and to avoid the costly foreclosure process. The banks have gotten funding from the many government bailouts that have given them plenty of cash to discount loans. However, they have been dragging their feet for a variety of reasons. Some of the reasons have been legit and some have been bogus.
Securitized loans can be harder to modify or short sell because there may be several different parties involved in the ownership of the note but it is still possible. Banks can get short sales and in Nevada they are starting to realize they market will never clear and their inventory of foreclosed properties will never go down if they don’t start a process of dealing with home owners and realtors facilitate short sales.
The ideal situation in most cases would be for the bank to just negotiate directly with the home owner and modify their loan so they could stay in the house with a lower payment and lower mortgage amount but for whatever reasons the banks have refused to use this as a tool clear up their books. It makes less sense to do a short sale for the bank but they seem to be more in favor of doing a short sale so selling your home this way and getting the balance of your mortgage waived so you can buy a new home very soon at a much lower price is the best scenario. It sounds unrealistic but it is true. The banks are willing to work out deals for short sales so you can get out of your home without any further liability.
If you are in the Las Vegas area and want to sell your home give me a call or email me and I can discuss your options. Being underwater is not the end of the line, we are processing short sales every day in your offices and people are moving on to buy a new home in a very short period of time. You do not have to be behind on your mortgage to do a short sale either. You can be current or you can be behind it doesn’t matter. Make the call today to get your home listed and sold quickly.
The inventory is low in Las Vegas and homes are selling very fast. This seems impossible but it is true. Call me, Tony Sena at 702-376-7379 and find out how to list your home for sale and get out from under that cloud of debt.