While only your lender can make a final determination about your eligibility for a short sale, you can get a good idea of your qualifications before you begin by having a frank discussion with a qualified short sale specialist.
You know the value of a short sale.
A short sale is a special arrangement with the bank that allows you to sell your home for less than what you own. By doing a short sale, you’re avoiding foreclosure, doing less damage to your credit and finalizing your obligations to the bank leaving you free and clear to get a fresh start. A properly negotiated short sale can prevent your bank from having the ability to collect more funds from you after the sale, and you can avoid bankruptcy, which many are forced to use as means to escape the legal hounding of the banks.
You’re in financial trouble.
You can’t have a short sale just because you want one. A vast majority of homeowners in Las Vegas are upside down on their mortgage if they bought during the boom years. The bank isn’t going to approve a short sale just because you don’t want to deal with the big payments anymore. On the other hand, if you can’t deal with your payments anymore thanks to a hardship like unemployment, rising interest rates and payments, pay cuts, or a new financial obligation like child support or new dependents, you’re much more likely to be approved for a short sale.
When to seek help?
If you know you’re not going to be able to keep up with your payments, now or in the future, it’s time to get a professional opinion. A great REALTOR® with a proven track record in short sales (at least 20 closed listings) will be able to look at your individual situation and advise you on your potential suitability for a short sale.
Work closely with your REALTOR® to get the application process started. It can frequently take up 60-90 days to get approval from the bank for a short sale, and starting as soon as you’ve missed payments gives you the biggest window for sale possibilities. Waiting until you’ve missed months of payments can make it hard to get approval for a short sale before you’re looking at foreclosure action by the bank.
Why is a real estate agent proficient in short sales so crucial?
It’s almost impossible to do a short sale without the help of an experienced REALTOR®. You’ll need industry connections and bank contacts to work through the various steps required to complete the process. Your agent will help you understand the process, handle all the phone calls and paper work, and give you advice on how to make your house more attractive to buyers interested in your property.
Most importantly, a short sale is a sale of your home and will be treated as such by you and your REALTOR. Any time you’re selling a property, you need to be actively working to make your house available to prospective buyers and be ready to move on to your next home at any time.
In the case of a short sale, you’ll be moving either as a result of the sale or after foreclosure if you’re unable to arrange a sale in time. Your REALTOR will help you throughout this process, and by working closely with him, you’ll be much more likely to see a positive result from your short sale giving you a chance to pursue a new life free of a huge debt obligation.
If you’re considering a Las Vegas short sale, get the help of a real estate professional with proven short sale success. That’s us – give us a call today at 702-376-7379.
Disclaimer: I am a Las Vegas real estate expert, but not a lawyer or a tax accountant. Nothing I’ve said here should be construed as legal or tax advice.