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.
There is a provision in any short sale contract that has a contingency where the bank must approve the sale. In other words, the catch is this: 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 the offer is made, the bank may try to convince the seller to refinance their loan and stay in the house, and then the bank doesn’t have to take the write off.
Generally speaking, people do business with those they trust. What will matter to them would be having interest in what is best for the buyer, and having a long term relationship with the people you are engaged with. The real estate market of Las Vegas short sales and Las Vegas foreclosure is not easy.
Las Vegas short sales need a lot of patience and time to seal a transaction. It may take months for the lender to respond, and you should find someone who can help you that is very experienced in the industry.
Foreclosure is a legal process where the creditor takes ownership of the property when the debtor fails to meet payment schedules due to sever financial constraints. Foreclosed properties simply mean the owner has moved out and the bank holds legal title to the property. In some states the previous owner still has a “redemption period” to get the home back from the bank.
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 close. A Las Vegas foreclosure, though, is final and the bank can turn around and sell them right away.
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 a comparable home to let you judge a property’s true worth. It’s not how much you can “take off” the sales price that counts – it’s how much the winning bid is in relation to the home’s value. Buyers need to be patient and realize it can take anywhere from two to six offers to acquire their dream home at the price they want to pay.
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