If there is one thing for certain, no two short sales are exactly alike. However, short sale experts know that each short sale process does have common characteristics, regardless of the circumstances. Short sale buyers always have questions regarding the short sale process, and here are answers to their top four frequently asked questions.
What Is a Short Sale Exactly?
In the Las Vegas market, as well as the market as a whole, many homeowners have discovered that they owe more on their home than what it is actually worth, and can’t afford to make up the difference. When this happens, lenders will typically recommend that the homeowner undergo a short sale. Through this process, homeowners are allowed to sell their home for less than what they owe on the mortgage. In order to become approved for a short sale, sellers must provide appropriate documentation to their lender that will convince the lender that the sale is necessary. Typically, sellers will become eligible for a short sale when they can show a financial hardship, or insolvency.
Why Would a Lender Want a Short Sale?
The fact is the mortgage lender does not want the home. What they want is to be able to get the best return on investment (ROI). For many homeowners, the only option available other than a short sale is a foreclosure. Homeowners, nor lenders, want the property to go through foreclosure. Foreclosures are costly, stressful, and time-consuming for all parties involved. When a bank avoids foreclosing on a homeowner’s property, they also avoid paying attorney fees, resale costs, property tax, and a variety of other expenses.
Will My Offer Be Accepted By the Bank? How Will They Decide?
The first thing you must remember as a buyer of a Las Vegas short sale is that no offer is guaranteed to be accepted by the mortgage lender. In terms of how they decide, each mortgage entity has different methods of determining whether or not they will accept an offer. In almost all cases; however, it will come down to what option will give them the best ROI. If you have further questions about this process, the best thing to do is to contact a Las Vegas real estate agent with experience in short sales in the area.
How Much of a Deal Will I Get with a Short Sale?
If you’re a potential buyer looking for a short sale in the Las Vegas area, there is a great possibility that you will be able to find a good deal on a new home. But this is not always the case, and there is a lot involved in a bank’s decision to accept a short sale buyer’s offer. Ultimately, it will still be crucial for any potential buyer to do their research and understand the market values of the homes they are considering purchasing.
Charity Jackson is a freelance writer for Las Vegas Short Sale experts Rothwell Gornt. To read more about short sales go to their blog at rothwellgornthomes.com/blog