Recent difficulties in the Las Vegas housing market have put "short sale" in the vocabulary of real estate professionals and home buyers and sellers alike.  Short sale, where a lender accepts less than the loan value to terminate the mortgage, offers a troubled homeowner an alternative to foreclosure.  It offers a buyer a great deal on a home at a price below market value.  It offers the bank an opportunity to take less of a loss on loan than they would if the property went into foreclosure.

Lenders would prefer that borrowers kept their original agreements but in Las Vegas, where inflated home prices and lax loan practices were the norm, many homeowners have lost their homes and thousands of others have negative equity where they owe more than the house is worth.  In this environment, one might think lenders would see short sales as a necessary evil that would help them clear their books.

The reality is that short sales progress slowly and often not materialize. They are set in motion when the homeowner or his agent presents a hardship letter that states that circumstance now prevent the homeowner from making the payment, along with a settlement statement.  In the normal course of events, there are counteroffers on both sides.

Based on recent sales figures, only 10% of short sale offers make it to the end of the line.  Of the approximate 28,000 properties for sale in Las Vegas in March, 2009, 9,000 are short sales.  This figure includes 3,300 pending sales with 272 sales that have gotten approval.  Some 5,000 contingent properties have 2,300 short offer awaiting sender approval.  If the 10% figure holds true, there will be over 2,000 disappointed buyers, 2,000 frustrated sellers, 2,000 obstinate lenders, and 2,000 irritated realtors left with no deal.

For those short sales that go through, the key is having a skilled real estate negotiator.  For help with short sale or for buying property in Las Vegas, Green Valley, or other areas of Clark County, contact Yonas Woldu. or Nebi Adhanom.