Short Sales

A short sale is a property where the owner owes more than what the property is worth. Short sale approval will generally be given when the owner can prove hardship and show cause why they are unable to continue to make the payments. If you are purchasing a short sale it generally takes anywhere from 2-6 months, and I have seen them go longer than a year. Keep in mind that if the property values are going up and the inventory is low, the waiting time can cost more money than it is worth. By the time you find out that it is not going through, the interest rates may have gone up as well causing a higher payment on your replacement investment. Realtors will often suggest pricing the property below market just to obtain an offer. The mortgage company will send out an appraiser to assess the value and they will send a counter offer if the original offer is not within range. Sometimes you will patiently wait the entire period to find out that the short sale was denied. In the meantime the owners credit is affected as they usually have stopped making the monthly payments. There are a lot more short sales closing now than there have been in the past, and some laws are in effect that have helped them close in a timelier manner.  

 

Tammy Abbott

Owner/Broker

(702) 685-9999

805 S. Rainbow Blvd.

Las Vegas, NV 89145

E:  results@rrvegas.com

W: www.rrvegas.com