Is Your House Under Water?
If you are like hundreds of thousands of Nevada homeowners, your house may not be worth as much as the debt on your mortgage or mortgages. As you probably know, this difficult situation is referred to as being "upside down" or "under water." Many people with an upside down house feel trapped in it because they can't sell or refinance.
At Randolph Law Firm, we can help you explore and pursue a short sale of your home if you are unable to sell it by conventional means. We are known for facilitating solutions to even the most difficult mortgage and debt problems.
Short Sale Benefits and Challenges
A short sale is the sale of a property in which a lender agrees to take less than the loan value — to sell "short." A short is essentially a settlement between the borrower (the homeowner) and the lender (usually a bank or mortgage company). If your house is under water, the benefits of a short sale include:
- The opportunity to sell the house even though you may owe more than you can sell it for. If you complete a short sale, your lender will provide you with a waiver of deficiency indicating a release of mortgage — meaning that you do not owe the lender what is left over on the mortgage.
- The ability to avoid the stigma of a foreclosure on your credit report — a short sale reflects a buyer's diligence in reaching agreement with their lender, rather than the perceived irresponsibility of "walking away"
The potential challenges of a short sale include:
- The fact that your lender has to approve a short sale offer. This is typically done via an approval letter in response to a buyer's offer. In many cases a lender does not approve the short sale.
- The slow turnaround from banks that causes many sellers to lose potential buyers who don't want to wait for approval
- A negative impact on one's credit rating, albeit a much lesser impact than a foreclosure
Get Advice From a Henderson Home Short Sale Attorney | Las Vegas Short Sale Attorney
If you are wondering whether a short sale is a good option for you, Randolph Law Firm can help you now. Contact us for a free consultation with an experienced lawyer.