The short sale process gives you the chance to sell a Las Vegas home that you can no longer afford. Many people assume that banks, credit unions and other lenders just want to make money and that those lenders won’t work with homeowners. If you live in Las Vegas and need to sell your home, the short sale process might be the best option for you.
What is a Short Sale?
A short sale is essentially an agreement between a lender and a borrower that lets the borrower sell the house before the bank forecloses on the property. You typically need to show that you have some type of financial hardship that prevents you from making your mortgage payments. Some borrowers choose the short sale option after losing a job, watching a spouse lose a job, going through a divorce or undergoing a long illness or medical problem. If you suddenly lose your primary source of income, you might find that you can no longer afford your mortgage payments. Your lender should give you the right to sell your home quickly.
How Long Does the Process Take?
Despite its name, a short sale will typically take a few months. When you sell your home through a short sale, you go through the same process that you would through traditional means. You need to work with a realtor, find a buyer for your home, wait for the offer to come through and close on the home. Many sellers find that their homes sit on the market for months or even years before a seller makes an offer. The short sale process goes much faster because buyers know that they can get a better deal on that home and move in faster. Which is especially important when you, as the current owner of the home, have fallen behind or in a default situation.
Are You in Default?
Defaulting on your home loan means that you stopped making payments on your mortgage. You might be one month behind or several months behind before the bank begins the foreclosure process. Even if you didn’t default on your mortgage, you might find yourself paying a little later each month and struggling to come up with the funds that you need. Whether you are a little behind, defaulted on your mortgage or just worry that you can’t pay your bills… The Batchelor Group can help. With her experience as one of the top realtors in Las Vegas, you can get your home sold fast through a short sale.
There are ways to successfully short-sell your home in Summerlin, Nevada a planned community in the Greater Las Vegas Area. Here are few things you need to know and be aware of before moving forward.
Owning a home in a planned community involves paying fees to your homeowner’s association and a special improvement district along with your monthly home mortgage payment. In a foreclosure, the State of Nevada requires the existing homeowners pay the balance due on a foreclosed home after the bank sells the property.
If you are underwater with your mortgage, you should know that your lending institution may be willing to help you short-sell your home and may even offer a cash incentive to homeowners to do so. The cash incentive can range from $3000 to $35,000, depending on the mortgage company.
Full-Deficiency Balance Mortgage Release
The lender can also give you a full-deficiency balance mortgage release so you owe nothing on the home after the short sale is complete. Since the home is underwater, the difference between what is owed and what the short sale nets will be paid by the mortgage compnany. Not only that, you can walk away from the property without suffering a foreclosure on your credit rating.
Master Planned Community Complications
Unfortunately, the deal can become complicated. In a master-planned community like Summerlin, your homeowners association can foreclose on your property if you stop payments at the same time your bank forecloses. In addition, your special improvement district can also foreclose if you stopped making SID payments. In fact… your homeowners association can foreclose if you fall behind, prior to the lender foreclosing.
Looking for Solutions
If you have decided to short sell your home and walk away, these issues must be resolved. Without damaging your credit, you can get a full deficiency waiver from your bank. If you are underwater with your property, this could be a solution. If you are behind in your payments, or if you are trying in vain to do a mortgage re-modification, the best option may be a short sale.
The major banks in Las Vegas are pursuing the short sale option with underwater homeowners, and are offering cash incentives and / or a full deficiency balance release as a way to resolve the problem. For information on how to short-sell your home and avoid foreclosure, contact Jillian Batchelor, your short sale expert.
If you’re underwater and facing financial challenges that have left you with a distressed property, there are many options out there and you may not know which is best for you. A short sale of a home can be a way to deal with such financial stress, and as experienced real estate agents, we at the Batchelor Group can help you successfully complete a short sale and find a way to extinguish your debt with your lender. We know the ins and outs of short sales, how to manage the sometimes complex situations that can arise, and help get your life back on the path to financial well-being and stability.
What is a Short Sale?
A short sale is when you owe more on your property than what the property is worth, its appraised value. In this case the bank or mortgage lender becomes a third party in the sale in deciding whether the short sale can take place and what is an acceptable price for the sale. At the Batchelor Group we know how to deal with your lender, and help you get a key aspect of the short sale known as the “deficiency waiver.” The deficiency waiver is a document that states, “with the short sale price beneath the owed price, you are not liable for the difference to your bank” which essentially means that once the property is sold, you will owe the bank nothing! You are able to sell your home and become debt-free!!! Selling your home in this way also limits how much you will owe in taxes to the IRS who can technically collect from you in ways such as garnishing your wages, seizing your bank account, and/or keeping your tax returns after a short sale. As an experienced Agency we will work to ensure that your short sale process goes as smoothly as possible. And that you are covered in relations to the deficiency waiver and limit your tax liabilities to the IRS.
Mortgage Debt Relief Available to You
The next consideration in your short sale is the Mortgage Debt Relief Act. This is legislation that terminates at the end of 2013 that provides relief from home owners in distress such as limiting IRS tax liabilities and also helping to limit the damage to your credit. When you short sale a home, sometimes depending on how your lender chooses to report on your credit report, you may very well take no credit hit at all. Worst case scenario you may see a 100 point hit on your credit. This is a much better situation than foreclosure that would do a lot more damage to your credit profile, which is another reason to let a qualified Agent help guide you through this process. Also, to be considered, in a short sale you never have to pay any commission to realtors like we normally do when selling a home. Another way we help manage your current stressed financial situation at the Batchelor Group is that we also have attorneys on our staff that will answer any legal questions you may have, so you don’t have to pay for a realtor and an attorney simultaneously. All of these factors will help you get the maximum debt relief towards getting you back on a solid financial track.
Advantages of a Short Sale
There are several reasons why you would consider a short sale over foreclosure on a distressed property. First, you can still live in your home until sold. If you’re not paying your mortgage payment, you can live there rent free. If you are paying your mortgage payment, you can live there up until the time it sells. You also shouldn’t be fearful that the bank is going to collect on the short sale difference years later because as was mentioned before, you have a deficiency waiver that protects you from the bank collecting on the debt. You will then be able to walk away, and be able to get on with your life and relieve yourself of that financial crisis that you’re currently facing. As you can see, our #1 objective is to get you back on your feet financially with as little effect on your future as possible.
The Batchelor Group Can Help
Lastly, if your home is in a distressed situation, we can help you in short selling it in the most efficient and stress-free manner possible. We can also help your family in securing a new residence. If you are looking to buy again, we can coach you on what the options are for you to buy in the future. So if you have any questions or we can help you in any way feel free to contact our office to speak with a qualified Real Estate representative. We look forward to working with you, and we do empathize in your situation, as we’re here to help relieve your stress.
* A short sale can be a better way to deal with a distressed property than foreclosure.
* A short sale gets rid of any financial obligation you have with your lender.
* The Batchelor group has expertise in short sales and can help you through the process.
* We can get you a deficiency waiver, help manage your tax liability, and can help you with any legal issues.
* The Batchelor Group has expert agents who can make the short sale process as stress free for you as possible.