Caliber Realty Group
Nevada Short Sale Experts
When the mortgage bubble burst, Nevada became ground zero. The consequences of foreclosure can be devastating, and the decision to select a Real Estate Broker to handle the short sale of your home becomes critical. Hiring an inexperienced Realtor or Broker to handle your short sale transaction could be disastrous. Caliber Realty Group's agents have the extensive knowledge, integrity and expertise to allow you to make informed decisions. Additionally, we have almost 30 years of experience dealing with Banks and the ability to get the RESULTS you expect.
Many Real Estate Brokers are still learning how to do "Short Sales." The Caliber Realty Group is backed by ownership that has been dealing with Banks and Loss Mitigation Departments for almost three decades. This experience allows Caliber Realty to offer a higher "Caliber" of service and stand out in today's challenging Real Estate Market. Caliber Realty Group's team of Short Sale Specialists help Nevada homeowners solve their financial problems and get a "Fresh Start."
In 2011, Caliber Realty Group joined forces with Nevada's #1 Short Sale Team, The Myers Team. In 2010, The Myers Team closed more short sale listings than any Realtor or Broker in the state of Nevada.*
What is a Short Sale?
For homeowners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a short sale. When lenders agree to a short sale in real estate, it means they are willing to release their lien against the home for less than the outstanding mortgage balance (including default interest and penalties, etc.). Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose.
As you may already be aware, this particular type of transaction requires a Realtor with the patience and knowledge necessary to persevere in the continual, and sometimes frustrating, discussions with the seller's lender.
At the Caliber Realty Group, we have experience in negotiating short sales with numerous lending institutions. Our process is based on the wisdom gained in successfully closing countless short sale transactions thus rendering it efficient and reliable.
What is the Lender's Incentive?
The incentive for the lender is to avoid foreclosing on the premises as this process is both time-consuming and expensive. On average the foreclosure process takes a year to complete. Over this period the seller's lender will have to retain an attorney to repossess the property. As you can imagine there are many legal hurdles to overcome which can cost the lender tens of thousands of dollars depending how on vigorously the homeowner defends themselves in court. If the bank agrees to a short sale, this expense can be avoided in its entirety.
Further, if the homeowner is not making their mortgage payment, nothing is being contributed into their escrow account. The escrow account is used to pay the homeowner's real estate taxes as well as their homeowner's insurance. Taxes and insurance must be kept current in order for the lender to protect its collateral. Therefore the bank is forced to carry the cost of the home from the time of default through the date of repossession or resale. The lender can save a substantial amount of money by agreeing to a short sale as opposed to foreclosing and carrying the expense of the home.
Frequently we are asked what the average percentage a lender will reduce the outstanding principal when considering a short sale offer. The answer is it does not matter whatsoever! When deciding whether to accept a short sale offer, the lender will compare the current offer to the alternative: simply letting the home go to foreclosure. At a foreclosure auction potential bidders will take the "fair market value" into consideration; not the outstanding principal balance owed by the homeowner. The short sale lender is aware of this fact and will apply the same principle to the offer that is presented. As long as the offer reflects the current appraised value the lender will ignore how much of a cut the deficiency is because that is what will happen at a foreclosure sale!
Short Sales Offer Privacy
A short sale can save the homeowner many months of stress, embarrassment, aggravation and uncertainty.
When considering whether to undertake a Nevada short sale, it is very important to make sure that the seller understands the benefits when compared to foreclosure.
One advantage to a short sale is that it is a private proceeding; unlike a foreclosure which is public in nature.
A financially distressed homeowner will receive literally two inches of mail on a daily basis from investors who are attempting to convince the homeowner that it is in their best interest to sell to them. Some of these solicitations are skillfully crafted to look like actual legal documents which may confuse and frustrate the homeowner. With a short sale this aggravation can all be avoided as the parties who are aware of the transaction are limited to those intimately involved.
This is not to mention the daily phone calls from the bank inquiring as to why the homeowner is missing their payments. Often the bank will attempt to reach the homeowner at work where they will initiate conversation with anyone who answers the phone, including the homeowner's coworkers or boss! Remember, they are attempting to collect hundreds of thousands of dollars and will use anything within their power to reach that goal.
In a short sale transaction this nuisance can all be avoided as the homeowner should instruct the lender to contact the Realtor they have retained who is intimately involved in the transaction and familiar with all relevant facts. The Realtor in this scenario acts as a shelter or buffer between the persistent lender and distraught client.
The Positives and Negatives of a Nevada Short Sale
It is important to understand that most short sale candidates have not done anything wrong. Typically a short sale homeowner purchased the property within the last three to ten years and financed a high percentage of the purchase price and perhaps closing costs, if not all (i.e. 100% financing with a seller's concession). Since that time, home prices have dropped significantly in value which means that if the homeowner wanted to sell or refinance they would have make up the difference between the mortgage balance and the current decreased value, plus closing costs.
There is also the possibility that the homeowner may not have understood the terms of the mortgage or was fraudulently induced into predatory subprime loans.
Whatever the reason the homeowner is in the situation they are in, it is crucial to appreciate that foreclosure should be avoided at all costs and there is always an opportunity to rebuild both your finances and overall quality of life.
Nevada Short Sale Credit Implications
Obviously late payments can be devastating upon your credit score. By the time the foreclosure process ends a homeowner may have missed a year's worth of payments, if not more.
By successfully negotiating a short sale, homeowners can salvage as much of their credit score as possible. Yes it is true that the lender will reserve the right to report this transaction to the appropriate credit bureaus which may negatively affect the homeowner's credit; however, as previously stated, the blemish caused by a short sale is quite small in comparison to the destruction caused by a foreclosure. At the conclusion of a short sale, the seller's lender will typically report to all three credit bureaus that the account has been, "Legally settled for less than the full amount."
Commonly clients are concerned about the timeframe necessary to rehabilitate their credit so as to qualify for a conventional mortgage in the future. The only reliable data we can gather has been based upon the information provided by our prior clients. Credit may be restored in as little as eighteen months. The only guarantee is that however long the timeframe may be, it is certainly less than it would have been had the foreclosure action concluded.
For additional short sale information, please click here: Nevada Short Sale Information
What Happens in Vegas...
Happens with The Caliber Realty Group
*Above production is based on 2010 results (short sale listing ends only) as of January 10, 2011. Raw data provided by IMS Advanced Reality Data Services, it is deemed reliable but not guaranteed. This website is designed to provide only general information. Nothing contained herein constitutes legal advice, nor is it intended to offer legal advice. Use of this website is not intended in any way to create or even to convey the impression that such use of this website by any person, organization or entity of any nature and/or kind constitutes any Broker-client relationship whatsoever. The Caliber Realty Group cannot make any guarantee as to the accuracy or currency of any information contained in or created through use of any link to another website contained in this website, and hereby disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause.
