List Your Home as a Short Sale and Avoid Foreclosure
Many homeowners face foreclosure. It can be the result of a catastrophic event, such as being hospitalized, job loss or other radical change in circumstances. Whatever the cause, the result is a homeowner falling behind in mortgage payment installments. In most cases, once three consecutive monthly payments are missed, the lender may seek to take the collateral property to amortize the outstanding loan balance.
What is Foreclosure?
Foreclosure is a legal process of repossessing real property. In some states, it is done through a court of law, known as judicial foreclosure. In other states, it is done by exercising a provision in the mortgage contract known as a "power of sale" clause.
Judicial foreclosures start with the mortgage lender filing a complaint against the homeowner in civil court. The homeowner becomes the defendant and must answer the complaint--usually within 20 days. If no answer is filed, the court okays the foreclosure. This process can range in length from a few months to over a year. Non-judicial foreclosures are not processed through the court. As a result, the process takes between 60 and 120 days.
How can Foreclosure be Prevented?
Foreclosure can be prevented in a few different ways. The homeowner may seek a mortgage modification. Or file for bankruptcy protection. The homeowner can also seek a short sale agreement with the bank. This agreement allows the home to be sold for less than what is owed on the mortgage.
What is a Short Sale?
As mentioned, a short sale is the bank agreeing to allow the homeowner to sell their house for less than the outstanding mortgage balance. In return, the homeowner is usually given an assurance the bank will not sue the borrower for the difference or what is known as a "without recourse" or "non recourse" stipulation.
Why do Banks Prefer Short Sales to Foreclosure?
Banks prefer short sales because the arrangement actually saves money in the long run. In short, a bank must spend money on attorneys to process the foreclosure, then must carry the property and pay to have it marketed and sold.
Who can Help Me with a Short Sale?
A Certified Distressed Property Expert or professional with a CDPE agent designation, can assist homeowners with short sales. These individuals are experts on the distressed property market. They also can provide information on short sale home owner's listings.
Contact me, an experienced CDPE Realtor in the Las Vegas area, today for more information on listing your home as a Short Sale. I am here to assist you every step of the way. Be sure to also browse through this site to find helpful tools to assist you with the buying and selling process such as: Neighborhood Values, Mortgage Calculators, Search for Las Vegas Real Estate, and much more!