What is the current state of Las Vegas Short Sales? Who is a Las Vegas Short Sale Realtor I can trust?
Here is my response: Right now even with the Covid-19 threat we all face, Las Vegas short sales are still under the national average of 5%. Here in the Las Vegas, Short Sales make up 2-3% of the housing market. My last short sale I completed was in January 2020.
What is a Short Sale?
Simply put a short sale is when you owe $300,000.00 on your home but the current market value on your home is $250,000.00. The “Short” is $50,000.00. In the past, The Mortgage Forgiveness Debt Act forgave that short amount from any tax liability. The $50,000.00 which is considered a capitol gain is considered income by the IRS. This law expired in 2017 so if you were to short sale today, you would have a tax liability. Talk to your CPA for more information.
Guidelines for Servicers and Lenders:
The new guidelines for servicers to issue some type of Forbearance program should also help people. The servicer or lender of your loan may ask you to repay what you did not pay. THIS IS NOT A FREE MORTGAGE OR FREE RENT SITUATION. This balance that is due could be a ballon payment which means you have 180 days of forgiveness but on day 181, you will have to pay back that balance you missed. Also, they might also add on the balance you owe to the loan balance you currently owe. This means if you owe $300,000.00 and if you missed $20,000.00 in payments, you now owe $320,000.00 plus interest and additional fees and charges which could make the loan go over $340,000.00. This is also something that is a major concern for me if you have equity in your home now, you may lose that equity if pricing falls. Call me today to see if selling your home NOW makes sense before you miss payments.
Also, please keep in mind that if you can make your house payments, please do! If we start to see mass defaults on loans, that will bring down the value of your home as well as the rest of us here in Las Vegas. If the housing market falls in value, it hurts everyone.
How I Can Help You:
Since 2006, I have completed over 250+ Las Vegas Short Sales with a 99.9% success rate. You will need to prove your hardship in order to complete a short sale. This means completing a financial packet that discloses your current assets, a harship letter, and specific forms from your lender or servicer of your loan. I help you complete this short sale packet and help you gather documents such as taxes, bank statements etc that will be required by your lender or servicer.
If you have any questions about completing a Las Vegas short sale, or you need to speak to a Las Vegas short sale Realtor, please contact me anytime at: 702-768-2552.