Las Vegas Short Sales
Short sales have been on the rise in Las Vegas ever since the economic recession of 2008-2010. When an homeowner cannot pay his mortgage, the lender (bank) may allow the current owner to sell his or her home for less than outstanding balance on the mortgage. Short sales benefit for both under water borrowers and banks alike, as foreclosures tend to costs bank more money in fees than short sales. Short sales help borrowers too. Even though they still lose their home, debtors will reduce the damage to their credit history. Another good thing about short sales is that they tend to be much faster than foreclosure for banks. The key difference between a short sale and a foreclosure is that short sales are mutually agreed upon by lenders and home owners while foreclosures are forced upon by the lender.
There are quite a bit of homes and condos for sale in Las Vegas as short sales. Those looking for investment property in Las Vegas or regular home buyers should be wary though. Short sale purchases can take upwards of 4 months to close and the bank could pull out at the last minute. They’re usually a nightmare to close on, but the best real estate deals can be had through short sales. Most real estate agents like Elite Realty and Remax properties actually recommend to their clients to avoid short sales all together, because it can take so long. Savvy investors and buyers should ONLY look at short sales if they’re looking for the best deals possible. Short sales in high rise condominiums like Sky Las Vegas, Panoromo Towers North and Turnberry Place can be had at below market prices.
There are two kinds of short sales. Bank approved short sales and regular short sales. Bank approved short sales are when the bank has “pre approved” the short sale MLS listing price. This kinds of listings can close much faster as the lender has already agreed to allow the short sale at the list price. Regular short sales on the other hand are not bank approved. This means that the “asking price” on the MLS listing may not even be approved by the bank. Example – let’s say you work with your real estate agent or buyers agent and you see a property for sale at the Signature MGM Grand condos with an asking price of $150,000. The property is a short sale. This means that even if you offer the FULL listing price and the owner accepts – the deal may STILL fall apart if the lender decides that the offer is too low for the property.
Las Vegas has a LOT of great short sale deals out there. Don’t let your real estate agent tell you to avoid short sales! If you’re looking to purchase a condo or home without any headaches though, you may want to avoid short sales. Buying homes that are sold through short sales are great for investors though, as they can make 10-20 offers at once and wait 6+ months if need be.