Short Sale Tips for Buyers Short Sale Tips for Buyers

 

Short Sale FAQ

Foreclosure FAQ

REO FAQ 

 

 

Be aware that a Las Vegas Short Sale can be a complex transaction: 

  • The lender may not accept your offer, even if the seller accepts it; 
     
  • The seller does not need to be in default (stopped making mortgage payments) – the lender (bank) may be willing to accept a Short Sale even if the seller is current in their payments, but, the value has fallen significantly; 
     
  • The seller may be over encumbered (owe more than the home is worth), so a reduced price may only be on par with actual market value, not below it.  

Short Sale Tips:

  1. Hire an Agent with significant Las Vegas Short Sale Experience – again, these types of transactions are very specialized and you want to work with an agent who has been trained to handle these types of transactions. 
  2. Do your Homework – research all aspects of this transaction; by gathering data on the Title, finding out if a Foreclosure Notice has been filed; and what is owed the Lender.  This background information can drive your deal, enabling an agent to put together an offer that fits the circumstances.
  3. Multiple Loans Mean Challenges – two loans can present challenges, as the first lender’s position is protected by the second lender, unless the second lender does not want to foreclose.  As an example, if the seller owes $245,000 on the first and $35,000 on the second, then your offer of $150,000 leaves nothing for the second – the first will need to give something to the second to garner their support.
  4. Get Seller Ready for Lender’s Needs – most lenders will not agree to a Short Sale unless the seller has no equity and is unable to repay the difference between your sales price and the existing loan(s).  The seller will need to draft a hardship letter for the lender and they may owe taxes on the amount of debt that is forgiven after the transaction is completed.
  5. Provide Documentation & Purchase Offer to Lender – after the seller accepts your offer then you need to forward to the lender for their approval as well.  The deal is not finalized until the lender agrees to your offer.  Also, have your preapproval for financing available and forward this to the lender and a list of comparables will help to substantiate your price.
  6. Create Urgency with a Deadline – give the lender a specific amount of time to respond, enabling you to cancel if they don’t meet your deadline.  Most lenders can make a decision in a 2-3 week period; therefore, it is a good idea to map your timeline to this.
  7. Know with whom you are dealing – get a name and all contacts at your lender and send them your offer, not to a department where your offer may get lost. 
  8. Home Inspection is a necessity – it is critical to have a home inspection performed to understand the shape of the property.  In most cases, the lender will not pay for inspections that would usually be paid for by the seller.  Make sure you don’t waive your right to home inspection and make your offer contingent upon approving them.  These should include pest, roof, septic system, chimney or fireplace.

A Short Sale means the seller’s lender is willing to accept a reduced payoff to release an existing mortgage held against the property. 

 

A Las Vegas Short Sale can enable you to get a great deal on a home.