A Short Sale is when the lender of record agrees to discount their payoff to accommodate a sale of a house when:
The borrower has experienced hardship and is unable to repay the mortgage
The value is proven to be less than the amount needed to pay off all loans, encumbrances and real estate selling costs.
The loan is delinquent or in default.
Often when the home value falls short of the mortgage balance, lenders will accept the lesser proceeds as a short sale. By doing this, the lender forgives the balance of the mortgage (in most instances) and thereby avoids a lengthy and costly foreclosure procedure. The lender also benefits by not having another “bad debt” on the books, not having to evict occupants and pay for their cooperation, not having to rehab the property, or risk the property selling for less if the market continues to decline.
Short Sales have become very prominent in Las Vegas with the declining real estate market, rising unemployment rate and fluctuating economy. If you have found yourself underwater on your mortgage and are considering selling your home, please know that we can HELP!
