An important item that the owner of soon-to-be foreclosed property should know about a short sale is that a bank has no commitment to sell the house. When the bank completes a short sale they have to write off the difference between their loan amount and the lesser proceeds from the escrow, which is something they wish to avoid.
As a provision in any short sale contract, there is a contingency where the bank must approve the sale. In other words, the catch is that if the bank persuades the seller to refinance the house, the bank doesn’t approve the short sale and the buyer gets their deposit back. After this offer is made, the bank may try to convince the seller to refinance their loan and stay in the house, which means the bank doesn’t have to take the write off.
As a general observation, people do business with people they trust. What matters here would be having interest in what is best for the buyer as well as having a long term relationship with the people you work with. The real estate market of Las Vegas short sales and Las Vegas foreclosure is not easy to understand.
Just like any other real estate business transaction, Las Vegas short sales need a lot of patience and time before you can say “case closed.” It may take months for the lender to respond and the experience of the listing or buyer agent with short sales is very important.
Foreclosure is a legal process in which the creditor may take ownership of mortgaged property when the debtor fails to meet payment schedules. Foreclosed properties simply mean the owner has moved out and the bank holds legal title on the property. In some states the previous owner still has a “redemption period” to get the home back from the bank.
A Las Vegas foreclosure is final and the bank can turn around and sell the property right away. An offer on a foreclosed property can take anywhere from one day to two weeks to be accepted by the bank and usually 30 to 45 days from acceptance to completion.
It’s safe to say that prospective real estate clients may get better deals on Las Vegas condos and homes by targeting foreclosure listings. But buyers need to keep in mind that everyone is looking for those deals right now. Sales volume in Las Vegas in August and July was back up to 2005 levels, and most well priced foreclosures have multiple offers submitted. Most foreclosures are actually selling above the listed price, not below.
Buyers need to keep in mind that these foreclosures are steals to begin with. Then they need to have a savvy agent that can provide comparables so you can judge a home’s true worth. It’s not how much you can “get off” the sales price that counts – it is how much the winning bid is in relation to the home’s value. Buyers need to be patient and realize it might take anywhere from two to six offers to acquire the home of their dreams at the price they want to pay.
If you have looked at houses in the last little while, you’ve seen that Las Vegas short sales are all over. Those in the market for a new home should seriously consider a Las Vegas foreclosure.
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