Understanding a Las Vegas Short Sale
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Although with the estimate of 75% of our Las Vegas Homes under water, I still have clients calling me daily with questions about the basics of a short sale. How long does it take, how much will the bank pay, what is a hardship and how much will it cost me are the most common questions.
I’ll try to address each of these questions in order.
Of course it depends on the the individual situation and the bank, but with all of the new procedures in place with the banks, the process has been greatly streamlined. If the owner has been pre-approved with HAFA, I have seen close of escrow within 45 of acceptance of offer. If the property is a second home or the owner is not occupying, it can take anywhere from 60 to 180 days from acceptance of offer to purchase.
How much will the bank pay is dependent on the owners assets, mainly what cash is on hand. If there is no cash, then it is unusual for the bank to request the seller to contribute any funds. They do not go into retirement accounts and I have not seen any requests for liquidation of assets in my four years of short sale experience.
If you are not able to afford to pay your mortgage, that is a hardship, if you have been transferred or there are any changes to your circumstances, that could constitute a hardship. A good Las Vegas short sale specialist can help you define your particular situation.
And lastly, how much will it cost? As an experienced short sale negotiator, it is our top priority to make the short sale process as affordable as possible, many homeowners have little or no cash on hand to pay for any expenses and we will ask the bank to pay for all expenses associated with the sale of the home, including the sales commission.
Navigating the short sale process can be a relatively simple process with the right agent in charge, it might be easier than you think. Call us today with any questions, we’re available!
Kathryn Bovard is experienced with the often lengthy and sometimes stressful Las Vegas short sale process. If you are contemplating a Las Vegas short sale, she can assist and navigate you through the entire process. Call Kathryn direct at 702-348-7191 to schedule a short sale consultation today.
Kathryn joined forces with Nevada’s #1 Real Estate Brokerage in September 2011. She is currently the Managing Broker for the new Green Valley branch of Realty ONE Group in Henderson, NV with over 400 real estate licensees. Kathryn is responsible for the leadership, training, coaching and recruiting of real estate professionals for this 11,500 sqft, state-of-the-art real estate office.
Kathryn Bovard is experienced with the often lengthy and sometimes stressful Las Vegas short sale process. If you are contemplating a Las Vegas short sale, she can assist and navigate you through the entire process. Call Kathryn direct at 702-348-7191 to schedule a short sale consultation today.
Realty ONE Group is a full service residential real estate brokerage that has embraced technology in order to make real estate transactions smoother for REALTORS® and their clients. With REALTOR® support at our core, our Team of Professionals® has grown to over 3,300 agents working from 14 locations in Arizona, California and Nevada.
- Realty ONE Group is ranked #1 in Nevada by Vegas INC for number of closed transactions, #4 in Arizona by IMS Real Estate Trends for number of closed transactions, and #4 in Orange County (in less than two years) for number of closed transactions.
- 3,300 agents (up from 2,500 in 2010) in the tri-state area
- $2.7 billion in sales volume (up 25% from $2.1 billion in 2010); over $600 million in Arizona, over $450 million in California, and over $1.6 billion in Greater Las Vegas
- 16,040 closed transactions (up 23% from 13,051 in 2010)
- Awarded by Inc. 500 as one of the Fastest Growing Companies in America (three straight years)
- Ranked as #1 Brokerage in residential real estate by “In Business LV” magazine
From cutting-edge technology such as our proprietary paperless transaction system, to real estate education and training, Realty ONE Group offers an unprecedented level of service to our agents, empowering them to embrace their entrepreneurial spirit. The company continues to thrive as the fastest-growing, debt-free real estate company in the tri-state area.
Can I short sell my home with a tenant?
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I get asked this question by many clients, particularly from those who live out of state. The simple answer is yes, banks will accept a short sale with a tenant in place paying the owner rent. The key here is what hardship does the owner have with receiving rent. For example, is there a negative cash flow once you calculate the entire costs such as taxes, insurance, maintenance and repairs, sewer, vacancy factor, etc. Or is there an over-riding reason to sell the home.
Usually the biggest obstacle is availability to show the home with the tenant. Ideally there should be a lockbox so that agents can show the home after making an appointment, I have found that not having a lockbox will seriously curtail the marketability of the home. Most agents will call the “day of” or the night before, and if the home is not available, then they will just move on to the next home. There are several incentives that you might offer the tenant to allow for this. A reduction in rent or a set amount taken off the rent for each showing provides an incentive for showing.
In fact in some cases having a tenant in place will be attractive to a potential investors as long as the rental amount pencils out for them. The lease will continue with the home, even though ownership has changed hands, so if you have a long term lease with a below market rent, that will also minimize the marketability. A lease will also prevent a lot of buyers who intend to occupy the property from looking at the home as their loan will be for owner occupant only.
Pricing the home to over come these challenges will be important in getting your home sold. Kathryn Bovard is experienced with the often lengthy and sometimes stressful Las Vegas short sale process. If you are contemplating a Las Vegas short sale, she can assist and navigate you through the entire process. Call Kathryn direct at 702-348-7191 to schedule a short sale consultation today.
Be a Genius in the Las Vegas Market
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If you watch the news, read a newspaper, or live in the Las Vegas area, then you’ve probably heard that the recession has hit the Las Vegas real estate market. But a new article in the Las Vegas Review Journal has some good news for those who think the Las Vegas market is in the dumps.
Hubble Smith, quoting a recent SalesTraq finding, says, “Sales of existing homes in Las Vegas rose to the highest level in 17 months with 5,114 closings in March — a 7.6 percent increase from the same month a year ago.” Not exactly what you would expect from our “recession-hit-market.”
And even with the bad image of the Las Vegas market, home sales remain brisk! 50% of all sales today are for CASH. Many investors apparently feel that our housing market is over corrected and under-valued. We feel the same way. We expect prices will continue to decline through the end of this year, and possibly into next year, but not by much.
It’s not that there is going to be a quick turnaround, but we do feel that we are at or near the bottom of this cycle, and that the long term outlook is excellent. Every recession in history has come to an end at some point, as will this one. So, if you want to look like a genius five years from now, buy all the Las Vegas real estate you can today.
Kathryn Bovard is experienced with the often lengthy and sometimes stressful Las Vegas short sale process. If you are contemplating a Las Vegas short sale, she can assist and navigate you through the entire process. Call Kathryn direct at 702-348-7191 to schedule a short sale consultation today.
Considering a Las Vegas Home purchase? Search all Las Vegas Homes for Sale using our free, interactive map-based search.
Things are Looking Up for Las Vegas Homes
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Positive real estate news is few and far between these days, especially in the Las Vegas real estate market. But I’m happy to report some good news.
The first fact: The median price of a single-family Las Vegas home is up .8%, from $125,000 in April to $126,000 in May, Hubble Smith of the Las Vegas Review Journal reports.
The second fact: The number of homes sold in Las Vegas increased: From May of last year, single-family homes increased 7.9% and condos and townhomes increased 14.4%, Smith reports.
Either fact alone would be a good sign; together, they’re a great sign. Indeed, Realtor’s Association president, Paul Bell, notes that “This was the first time so far this year that both of these key indicators increased in the same month for both single-family homes and for condos and townhomes.”
On top of this, the traditional home buyer is coming to the fore in the Las Vegas market. In the past, banks and investors were the main players, outbidding the traditional home buyer. And at least for the lower price ranges, the housing market is seeing some welcomed stability, says Rob Jenson of ReMax Central.
Residential Resources reports that 1,322 bank-owned sales, 985 regular sales, and 758 short sales. Frank Nason, president of Residential Resources, estimates that these numbers, together with the assumption that payments have ceased for short-sale listings, adds up to $5.54 million financial shot in the arm for the Valley.
Well that’s a lot of numbers, but what are we to make of it? For one, we shouldn’t oversell the good news—there’s nothing that deserves the word “trend” quite yet. It looks as though more homes are being sold, the price is slightly increasing, and people, not institutions, are buying more homes. And portions of the market are beginning to sail into calmer waters. This is what the scant data seems to suggest. Let’s just hope that it’s a microcosm.
Kathryn Bovard is experienced with the often lengthy and sometimes stressful Las Vegas short sale process. If you are contemplating a Las Vegas short sale, she can assist and navigate you through the entire process. Call Kathryn direct at 702-348-7191 to schedule a short sale consultation today.
Considering a Las Vegas Home purchase? Search all Las Vegas Homes for Sale using our free, interactive map-based search.
