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The Las Vegas Short Sale Process

A Dignified Alternative To Foreclosure

The Short Sale Process

A Dignified Alternative To Foreclosure

Anyone who purchased a home in Las Vegas from the late 1990's forward is maybe even at best, assuming they didn't take out a second mortgage. 

Homes built and bought in the newer sub divisions in the southwest and northwest have lost anywhere from $100,000 to $200,000 in the last five years.

When you are in a situation where you owe more than what your home is worth and you need to sell but you don’t have the money for the difference at closing you may want to consider a short sale as a dignified alternative to foreclosure.

When you or someone you know is affected by market changes and you need answers to avoid foreclosure or if you're in danger of losing your home or if you want to walk away from your home, call me right away at 702-677-8796 to protect your rights!  Don't Delay!

As a Las Vegas Realtor and Certified Short Sale Specialist with a 100% success rate, my greatest value is guiding distressed homeowners through the complex short sale process; helping distressed homeowners avoid foreclosure; and helping buyers pursue short sale and pre-foreclosure opportunities.

As Your Las Vegas Short Sale Specialist

What To Expect...

  1. The Listing Contract – Your lender(s) require a listing contract showing them your property is being actively marketed along with a completed short sale package. We will obtain all required forms and data specific to your lender(s) to begin the process. 

  2. Lock Box – We will hang a lock box for showings – if permitted. The lock box provides data to us for following up with agents who show the property. A lock box doubles the showings than a property without one.              

  3. Pictures – We'll take professional pictures of the property and create a virtual tour and showcase your property in print and online in 100's of home search sites to maximize exposure. The better the pictures, the better your chances of selling your home and receiving offers the bank will consider.  
  4. Within days of obtaining your listing, we will have your property live on the MLS. If we are unable to get pictures during that time, due to property preparation, we will have to do a written exclusion of the MLS. We encourage you to prepare your home in advance and work with the photographer on scheduling. If you allow a lock box, you will not need to be present for the photos. A professional ad will be written, 8-25 pictures will be featured, and link to a virtual tour will be provided. The better the MLS brochures look, the more likely it is that we will receive an offer within our 6 week plan.  
  5. My short sale transaction team will submit all information including your authorization to speak on your behalf, the listing contract and your completed short sale package when the bank will allow the submission. The Short Sale Package Submission – All banks are different. Certain banks want the entire short sale package up front, while others won’t look at anything until there is an offer.

  6. The marketing plan-All short sale listings are put on a plan from the day their listing is live on the MLS. This plan includes the weekly updates, internet marketing, and price reductions when necessary. This plan is designed to generate an offer within 4 - 8 weeks of a live listing. You will receive change orders that require your signature in order to reduce the price.
  7. The Timeline – The entire process typically takes 90-120 days
  8. The Offer- The law requires us that we present you with all reasonable offers. We will explain the offers, what they entail, and what they mean to you. You will have the right to accept, counter, or reject all offers. Our goal is to obtain an offer that proves to the bank that it will be more expensive for them to foreclose than to accept the loss on the provided offer. If the offer is too low, we will need to counter or reject. In some cases, especially where there is a tenant, the price has to be dropped under fair market value to encourage an offer. In this case, we will have to provide proof to the bank that we attempted to obtain a higher offer. This is done providing marketing proof, MLS records, and showing reports.
  9. The Acceptance – Once we have an accepted offer, all information will be submitted to the bank. The bank will require proof of fully executed offer, fully executed counter offers, and a HUD1. The HUD1 basically provides the bank with a bottom line loss or net which includes the brokerage fees and closing costs associated with the short sale (closing costs and commissions are paid by your lender).
  10. The Property Status – Here is the tricky part. Once you accept an offer, the Board of Realtors REQUIRES us to list your property as “contingent” in the MLS. This shows other Realtors that your property has an offer. If a buyer hires a Realtor to look up active properties, your property may not show up on their report. This is required to prevent sellers from wasting the time of buyers who would otherwise assume your property is available. We are permitted to continue marketing your property as we had been on TV, Radio, Internet, Print etc. It is only the Multiple Listing Service that requires us to list your property as contingent. During this time we are permitted to receive other offers and send them to the bank as well. 
  11. The Escrow – We will require the buyer to open escrow within 24 hours of your signed acceptance. Although they will be required to deposit an earnest money deposit, this does not mean you are entitled to it. The earnest money check is cashed and held in a bank account assigned to the title company. In most cases, the offer provides the buyer with financing contingencies that entitle them to a refund if they lose their financing. In addition, they will have a due diligence process (explained on the next item) that allows them an exit strategy due to inspections etc. That being said, both parties to have to sign a cancellation of escrow in order for the buyer to obtain a refund. You have legal rights as well and will have the right to refuse the reimbursement with your legal representation. The Escrow officer will be determined in the contract. Nothing will be done without both parties agreeing, that includes the actual closing of the home.

  12. Due Diligence – Due diligence is the process where the buyer investigates everything they need to know, in order to make an educated a decision about the condition and whereabouts of the property. This includes inspections, investigations of nearby schools, worship, and other buildings or services pertinent to the buyer, home owner’s association’s amenities and regulations, and property inspections. The length of due diligence is determined in the contract and is typically 10 days. The buyer has the right to withdraw their offer and obtain a refund of earnest money within that due diligence process. After the due diligence process is complete, only finance contingencies, or the sellers failure to perform (honor the contract) would entitle them to a refund, unless otherwise agreed upon in the contract. In a “normal” transaction, due diligence would begin on the date the contract is signed. In a short sale transaction, due diligence (unless otherwise stated in the contract) begins upon written bank approval of the short sale financing contingency. In other words, approval of the short sale.

  13. The Bank Process – Once the bank receives the offer and the short sale package, they begin their procedure. They will order what they call “Values”. The values are usually obtained by two reports. The first is a standard appraisal. The appraiser will valuate your property based on the condition and nearby sales. The second is a Brokers Price Opinion, more commonly referred to as a BPO. The BPO is ordered from a non-affiliated real estate agent.  In most cases, especially if your property is occupied, they will only do a “drive by” obtaining exterior pictures and statistics for the bank. The bank will then assign these values to a negotiator. The negotiator will then determine if the offer is acceptable. If you have multiple mortgages, this process has to be completed with each bank.   When you qualify for a HAFA or Cooperative Short Sale, your lender sets the selling price prior to accepting an offer. 
  14. The Decision – There Are Four Parties Involved In The Process Of Short Sale:  The Seller, The Buyer, The Bank(s) or Servicing Company(s) Who Service The Loan And The Investor Who Has Financially Backed The Loan. Sometimes The Servicer And The Investor Are The Same, But Rarely. In Some Cases There Is A Fifth Entity - A Mortgage Insurance Company. 

    The most common reason for denial or delays are liens. If you have not paid your HOA dues, you will be unable to pass a free and clear title if they have placed a lien on the property. We strongly encourage you to keep your HOA dues current. If there is a mechanics lien (sometime seen from a pool builder or repair person who was not paid), it makes it more difficult, but not impossible to close. Negotiations to reach an agreement to release the lien for less may cause delays.  If the offer obtained is high enough, and the bank is ultimately receiving their “bottom line”, it might be paid. Another struggle is the 2nd or 3rd mortgage.  We must get the additional mortgages to agree just as much as the first. Without their approval, we have no sale.  Everyone has to agree to take less than owed.  Once the servicer/bank(s) receive approval from the investor who backed your loan, they will give us a written approval stating their terms (bottom sales amounts, commissions, closing costs, timeline to close etc.) If you don’t agree with their terms, you don’t have to agree to the short sale. If there is a denial, you owe nothing to the brokerage.

  15. The Commissions – This is the good news. You do not pay the brokerage/agents commission, the bank does. The goal here is for the loss of your home to be your entire expense. There's a small broker transaction fee due at the completion of the short sale that may be paid by your bank.  You may have to agree to pay your lien or HOA arrears if they can’t be negotiated.

  16. The Closing – This is the best part. Once the acceptance from the bank is handed down, the HOA (home owner’s documents) package is approved, and the due diligence is completed, the buyers & sellers are brought into the Title Company to sign off on all documents. The buyer’s funds are then deposited (usually within 24 hours – 72 hours of signing), the deed is recorded, and you are done. You must vacate the property PRIOR to closing. In our experience, it is best to vacate the property 72 hours prior to closing (provided both parties have signed). This allows the buyer to complete the walk through on a vacant property. This is not required, just suggested. We suggest you have all utilities scheduled for shut off on the next MONDAY after closing. This way, if there is an extension for any reason, you are not stuck in the property with no power, gas or water. Please remember to forward your mail to your new address.

  17. You Have Regained Control Of Your Finances, A Heavy Debt Load Has Been Lifted

  18. Move Forward

  19. Local Portfolio Lender Will Finance Within 1 Day Of Completion Of Short Sale!

  1. FREE To Move Forward
Know the facts...Get your FORECLOSURE vs. SHORT SALE Report!  Don't Delay!

Benefits Of Short Sale

SHORT SALE program may give you $2,500-$10,000 Relocation Assistance at COE

Short Sale Program Will Pay All Your Closing Costs

Call 702-677-8796

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 Las Vegas Realtor, Linda Strasberg

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