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Henderson real estate terms | What is a short sale?

Written by Posted On Friday, 23 October 2015 11:00
Henderson real estate terms | What is a short sale?

Henderson real estate terms | What is a short sale?Henderson real estate terms | What is a short sale?

Though the Henderson real estate term has become more popular in the last few years with the decline of the housing market, many still do not have a clear understanding of short sales. Below are a few frequently asked questions about short sales. Keep in mind, if you are looking to sell your home in Henderson, Boulder City, or Las Vegas it is almost always better to sell your home traditionally.

If you want to know if a short sale is right for you, contact The Klinger Group at 702-509-1446.

Looking to get a great deal on a home for sale in Henderson? Contact local experts at 702-509-1446!!

What is a short sale?

A short sale is the process of selling a house that is worth less than what the owner still owes the mortgage company or lender. Usually homeowners short sale their home to avoid a foreclosure. Say you bought your home at the peak of the housing market for $300,000, but now it’s only worth $200,000. In this instance you would have to go to your lender and see if they would be willing to let you sell the home for the current market value. This can sometimes be difficult, but usually the lender would rather work with you than have to foreclose and deal with selling the home themselves.

Interested in purchasing a Henderson short sale? Contact the Klinger Group at 702-509-1446!!!

Do you qualify for a short sale?

To qualify for a short sale in Henderson, banks will require evidence of a hardship. Common hardships are a death of an income earning family member or resident, a divorce, or significant unseen expenses such as medical bills. Whatever your hardship, it will have to be significant enough to convince your lender to take a loss in the efforts to still get some of the money back which they lent to you for the purchase of your home.

Need a certified short sale real estate agent who specializes in Henderson real estate? Contact the Klinger Group at Nevada Desert Realty at 702-509-1446 to talk to their short sale specialist.

What do you need to do to short sale your home?Henderson real estate terms | What is a short sale?

A short sale will be a much more complicated process than a traditional Henderson real estate listing. There are a lot more forms and the sale will usually take at least twice as long as a traditional sale will. You will need to choose a real estate agent who can represent you and help you deal with your lender. In a short sale, your real estate agent will have to mark on the Las Vegas MLS that your property is a short sale property. Once you get a offer on your home, you will have to have them sign a short sale addendum, getting proof that they know they are purchasing a short sale in Henderson.

Keep in mind that every lender is different, and some require different forms or documents than others. In most cases you will need proof of income, proof of expenses, bank statements, paystubs, a hardship letter written by you and proof that what you are claiming is correct (such as medical bills, a death certificate, divorce decree, or other official document), in addition to a few other forms or documents requested by your bank. Your bank will let you and your real estate agent know what they need from you. Make sure that when the bank requests forms or documents from you, you complete them in a timely manner.

Call 702-509-1446 to get a FREE home evaluation for your home in Henderson, Boulder City, or Las Vegas!

What is the short sale process?

Short sales are complicated because there are multiple people involved in the sale. Having a second or third mortgage will also make the paperwork pile up and will slow down the process even more. In the instance that there is only one mortgage that you cannot pay off, you will start with:

  1. Hiring a short sale certified real estate agent
  2. After you choose your agent, then you will have to get short sale approval from your lender. Your lender will be requesting different documentation throughout the short sale process, so make sure you do not fall behind or procrastinate getting the lenders what they are requesting.
  3. Once you have approval to continue from your lender, your agent will list your home on the Henderson MLS.

Looking for an expert real estate agent? Contact the Klinger Group at 702-509-1446 now!Henderson real estate terms | What is a short sale?

  1. If you receive an offer, your real estate agent will send your bank or mortgage company the listing agreement you’ve signed with your real estate agent, purchase agreement signed by you and the buyer, your short sale package, and the buyer’s preapproval letter or proof that they have the funds necessary to purchase the home. Other documentation will probably be required, but those listed above will always be required.
  2. The bank will look over the documents and if they are in favor with the offer, they will give their approval and escrow will be able to move forward. If not, the buyer and your lender may have to negotiate. Lenders usually are not very flexible, and this part of the process can be frustrating. Getting bank approval for each step of the process is the major reason why short sales can take months to close escrow.

One of the main things to keep in mind with the short sale process is that every short sale is different. Though the process above is the traditional process, it does not mean that your lender requires extra steps in order to complete the short sale.

Want to receive a free list of Henderson Short Sales? Contact the Klinger Group to get your list today!!!

What are the benefits of purchasing a short sale home in Henderson, NV?

Why would someone purchase a short sale if the process takes twice as long as a normal sale? Many home buyers who are looking for a deal ask their real estate agents to show them short sale properties. This hope for finding a great deal isn’t always valid as lenders will want top dollar for the home as they are already taking a loss.

Henderson real estate terms | What is a short sale?Another thing to consider is how long you have till you have to be moved in? If you have a 2 month window to look for and purchase a property, then you should stay away from short sales and foreclosures. Another downside to short sales is that usually you will need more cash upfront for closing costs. If you are only planning on putting down 3-5%, you also may want to stay away from a short sale.

If you want to know if a short sale is right for you, contact The Klinger Group at 702-509-1446.

However, if you are planning on taking several months to purchase a home and move in, and you will be paying cash for your property or have a decent down payment, a short sale may be perfect for you. Though banks make it hard to get an amazing deal, the key to buying short sale properties is that usually they are outdated, and the sellers and the lenders do not want to spend money or time to prepare the home to sell at top dollar. In this case, usually short sale homes are cheaper as there may be repairs or upgrades that need to be made that the rest of the homes in the area already have. The fact that a short sale may need more work than traditional sales in the area will give you an edge against the bank to talk them down. This is true of course, if the lender you are dealing with is fair, which is not always the case.

Michael and Anna Klinger have been real estate agents for 14 years. As certified short sale specialist and local experts, they are your best candidates for buying and selling short sale homes. Contact them at 702-509-1446 to find out more about the short sale process!!!

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