If you can no longer afford mortgage payments, a short sale is the option to consider. However, it is not possible for a home owner to complete a deed in lieu of short sale without the permission of the lienholder. When lenders agree to a short sale in real estate, they are accepting discounted payoffs on their properties. By taking advantage of the short sale benefits, you avoid eviction and your house will not be sold via auction or public sale. A successfully closed short sale in Las Vegas will likely render homeowners full release from all loans or deficiencies; thereby salvaging potential credit disasters.
A short sale occurs when there is not enough equity to sell the home and pay all the costs associated with the sale. This is to say, the property is worth less than what is owned on the mortgage. In choosing to request a short sale, you may be able to sell your house, settle mortgage debt, and most importantly, avoid foreclosure or even bankruptcy. The lienholder may opt to sanction for the short sale by allowing a buyer to purchase the home for less than the mortgage balance. As a matter-of-fact, in Las Vegas, a professional real estate agent can negotiate with banks in the attempt to fully release you from all deficiencies.
The homeowners must meet certain qualifications to be approved for the process. Firstly, inflexible comparable sales must substantiate that the property is valued less than the delinquent balance owed to the lender. Your mortgage should be near or is in the default status, which can be contributed to a number of factors. The seller is expected to submit a letter of hardship to explain the reason (s) for inability to pay remaining debt, to include reasons why the seller will no longer make monthly payments. And finally, the seller must be able to verify that he is not in possession of liquidated assets to cover the shortfall.
Because a real estate agent is not in the position to give you legal advice, it recommended that you seek assistance from a real estate lawyer and tax accountant to determine any short sales consequences that you may encounter. Keep in mind that sellers may be subject to tax obligations for the shortened difference. The short sale does not actually appear on your credit report, but the status of the loan does. The short sale is a redeemed pre-foreclosure; therefore the report will list this status as Paid In Full For Less Than Agreed. There is less damage for the delinquent borrower’s credit in that it allows the borrower to purchase another home within two years whereas a foreclosure demands a 5 to 7 year grace period. Even as there are short sale advantages, in some instances, there is no overall credit score advantage.
Even if we concur that a Las Vegas short sale is not an ideal option, it is the most feasible when compared to foreclosure. Short sale is not on your credit report; however you may see a minor drop in your score due to the late marks and nonpayment during the Las Vegas pre-foreclosure period. Real estate agents in Las Vegas are committed to helping you with your short sale and saving your credit.
Within two years, you can qualify to buy another home using a Fannie-Mae backed mortgage. You also have the option to wait three years and qualify for FHA insured loans. As you can see, there is a significant difference in pursuing new ownership in Las Vegas following a short sale. With a short sale, you can erase your entire debt forever.