Cause and effect

Whether you are buying or selling a home right now, there is another option you may want to consider, short sales. I have just read an interesting article in the Las Vegas Review Journal online entitled, “Short sales help homeowners avoid foreclosure”, that talks about the effects of the high number of foreclosure homes springing up in Nevada and more specifically, Las Vegas.

Due to the record number of foreclosure homes on the current market, there are approximately 3,350 homes in Las Vegas listed as short sales. Short sales are a way for homeowners to sell a home for less than they owe. Though a buyer and seller can negotiate a short sale, the lender or beneficiary must approve the final terms of the short sale. Lenders will generally agree to a short sale before putting a house in foreclosure because, “If a bank puts the house in foreclosure, it has to clean it up, paint it, replace the carpet, list it on the market and pay a broker’s commission”. Therefore, it is in the lenders best interest to minimize losses.

For homeowners, this is an excellent opportunity to avoid a reduction in their credit score due to a foreclosure. A short sale can happen even if your house is already in foreclosure, helping the seller avoid having a foreclosure on their credit record. Short sales are good news for buyers too. They give buyers an opportunity to buy a home for less that actual market value. And, as already mentioned, lenders are more than happy to forego the stress and hassle of seizing a home, repairing it and putting it up for sale

So, if you are having problems selling your house in these difficult times, you may want to consider this viable option. If you are buying a home, you may want to look into this alternative and potentially find an even better deal.