Are you one of the thousands of Americans who is facing a Nevada foreclosure because you cannot meet their mortgage payments?
Although Las Vegas house prices have increased, the average selling prices of Las Vegas properties are still well below prices reached between 2006 and 2008.
It's likely that the current value of your home is less than what you owe the bank, so you really don't know how to get out of your current situation and there is a great temptation just to give up and let the bank foreclose.
Stop and Get Help now by calling Las Vegas Short Sale Specialists at 702.482.7739
Don't, there are some options. You could try to refinance your home at a lower interest rate, although this may not be possible if the value of your home is a lot less than your outstanding loan balance. A straight sale is another possibility, but the bank will expect the balance of the loan to be repaid on completion of the sale, so unless you have some money invested this will not be possible.
Have you considered a Las Vegas short sale? Many home owners have used short sales to sell their homes, overcome their financial problems, and avoid drawn-out foreclosures.
Impact on Your Credit Record
When you are in the distressing situation of imminent foreclosure, it is hard think ahead, and future credit worthiness may be the last thing on your mind.
However the economy is slowly recovering, jobless rates have fallen in the last few years, and there is a glimmer of light at the end of the tunnel.
You should try to preserve your credit rating as a time will come when you will again need credit. One benefit of short sales is that they often have less impact on your credit rating than foreclosures, and in some circumstances the impact might be minimal.
Don't Leave It Too Late
There is a natural tendency to fight to keep your home, and when Nevada foreclosure looms many people try to stall in the hope of better times ahead. This may be an unrealistic expectation, and it's important for you to take stock and assess your chances of avoiding foreclosure.
If there is little chance of finding a way to keep your home, it would be better to act sooner rather than later.
One reason a short sale is a good idea is that if you can dispose of your home relatively quickly, the balance owed the bank may not include penalty interest. If you reach the point where you cannot meet your payments, arrear interest mounts, and the compounded effect of interest on interest will cause a sharp rise in the outstanding balance.
An early settlement will allow you to move on as well as giving you time to restructure your finances so that you can make ends meet and, in time, start saving.
If you maintain monthly payments during the selling process, the impact of short sales on your credit record could be less severe, especially when compared to a foreclosure where your record will show that you defaulted on the loan.
How to Go about Setting up a Short Sale
Although short sales take less time than foreclosure, it is still a tedious process. The first step is to get your bank's approval. This will entail the submission of documentation outlining your situation and will include:
- Hardship letter outlining the reasons you are seeking a short sale
- Complete financial statement
- Tax returns
- Your W-2 forms
- Bank statements
- A letter of authorization allowing your agent to speak to the bank
The bank approval process takes time, but Las Vegas has one of the highest home default rates in the country and it is in your bank's interest that your house is sold rather than foreclosed. Provided your motivation is sound, there is a good chance of approval.
Once your bank has given initial approval for the short sale, and an indication of the amount they would expect, your agent can then market the house as a short sale home. On receipt of an offer, the agent must obtain your approval before submitting the offer to the bank for their acceptance. Bank approval can be complicated and tedious and your agent needs to be in frequent contact with the bank.
For a successful short sale, it is important that your agent thoroughly understands the short sale process, and knows how to motivate acceptance of the offer.
Contact The Ballen Group, Las Vegas Real Estate Specialists on 702-482 7739. They have loads of experience with short sales in the Las Vegas area, and can help you close an unfortunate chapter in your life and move on.
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