Las Vegas Short Sale Attorneys
How to Sell a House with Negative Equity
A short sale can allow an individual who is delinquent on their mortgage payments to successfully sell a house in which they have negative equity. The short sale process can allow the homeowner to avoid a foreclosure, while still freeing themselves of a home they can no longer afford. It is important to speak to an attorney before proceeding to a short sale so that you are aware of the tax consequences and what to expect from a short sale. An experienced Las Vegas short sale attorney can advise you as to whether this is your best option.
What Is a Short Sale?
In a short sale, a property is listed for sale at fair market value and, once an offer is received, it is presented to the mortgage holder (bank, investor). The mortgage holder agrees to accept less than what is owed on the property to allow the sale to proceed.
The mortgage holder evaluates the offer based on several factors to determine its potential loss. The main items evaluated are the seller’s financial situation and the reason for a financial hardship that would not allow the seller to continue to pay on the mortgage note and could lead/is leading to imminent default of the loan.
Your success in completing a short sale with a deficiency release depends on just a few of the following factors:
- Who is your investor or mortgage holder? Remember this is not always who is servicing your loan! Was the original loan an FHA, VA, Fannie Mae, or Freddie Mac loan? Do you have one loan, two loans, or three loans? Are any of the loans on the home HELOCs?
- Are you current or late on your mortgage payments?
- Do you have mortgage insurance on your loan?
- Do you have assets and what are they? Are they liquid?
- Is this your primary home or an investment home?
When negotiating a short sale, you need to know if the buyer for your home is paying cash or if they are attempting to get FHA or VA financing.
The short sale process can be complicated depending on the number of lienholders involved in the transaction. In Nevada, a lienholder can pursue a deficiency judgment or remaining loan balance for up to six (6) years. It is in the homeowner’s best interest to make sure the deficiency is released.
Benefits of a Short Sale
A short sale has less impact on the individual’s credit history in comparison to a foreclosure. Additionally, a short sale will also allow the individual the ability to purchase a future home in a shorter time frame as compared to a foreclosure.
A short sale can remove many months of stress and uncertainty and allow you the freedom to plan your future.
Hiring an attorney to negotiate with lenders has a much higher rate of success in obtaining a deficiency release. Hurtik Law & Associates has a team of highly experienced and knowledgeable professionals who have successfully negotiated hundreds of short sales.
Call our Las Vegas short sale attorneys at (702) 323-5750 for a consultation to determine what the best option is for your circumstances.