Klinger Real Estate Group

Mike & Anna Klinger, Professional Realtors® - Residential Specialists

Contact us If you need to be saved from foreclosure

We've saved hundreds of homeowners from foreclosure.

Short Sale Experts

we've saved 300+ homeowners from foreclosure

Buying Henderson Short Sale Real Estate

Why would someone be interested in buying Henderson short sale real estate if the process takes twice as long as a normal sale? Many home buyers who are looking for a deal ask their real estate agents to show them short sale properties. This hope for finding a great deal isn’t always valid as lenders will want top dollar for the home as they are already taking a loss on the sale of the home. However, if you are dealing with a realistic lender you may be able to find a great deal. Usually homeowners who are short selling their home did nothing to prepare the home for a sale and buyers with experienced short sale agents will be able to negotiate the price down because of all the updates and possible repairs needed.

Henderson short sale real estate listings have longer escrow periods

Another thing to consider is how long you have till you have to be moved in? If you have a 2 month window to look for and purchase a property, then you should stay away from short sales and foreclosures. It will often take a bank a month or two, possibly more to review and approve an offer on a home. During that period you may not hear back from the listing agent at all and feel like you’re not sure what you’re waiting on. Remember that banks or lenders are taking a loss in a short sale, and they are in no hurry to complete the sale.

Henderson short sale real estate listings will require more cash up front

Another downside to short sales is that usually you will need more cash upfront for closing costs as it is not unusual for the seller to be behind on their utility or HOA payments which will need to be paid at the closing table. If you are only planning on putting down 3-5%, you also may want to stay away from a short sale because of the other expenses above and the repairs that may be required immediately.

Understanding Henderson short sale real estate values and repair costs

However, if you are planning on taking several months to purchase a home and move in or fix up to sell or rent out, and you will be paying cash for your property or have a decent down payment, a short sale may be perfect for you. Though banks can make it hard to get an amazing deal, the key to buying short sale properties is to have an experienced short sale real estate agent to help you through the process. Knowing the current market values of homes in the area is also a huge factor to finding a deal on a short sale, this is another area in which your short sale real estate agent can help. The fact that a short sale may need more work than traditional sales in the area will give you and your short sale expert an edge against the bank to talk them down. This is true of course, if the lender you are dealing with is fair, which is not always the case.

Henderson short sale real estate is usually sold in “As is condition”

This means that they will not offer repairs or may be unwilling to reduce the price for necessary repairs. THIS DOES NOT MEAN THAT YOU SHOULD NOT HAVE A HOME INSPECTION! An experienced short sale real estate agent will encourage you to still pay about $500 for a home inspection. This will help you determine if the home is in good condition. If the home inspector finds major issues, you will at least be able to make an informed decision on whether or not you should continue with the sale. The inspector may know the costs of certain repairs as well or be able to refer you to someone who can give you a better estimate.

Facing Foreclosure

Borrowers facing foreclosure may ask the lender to accept a discounted payoff on their loan, a “short sale” or “short payoff”. This allows borrowers to avoid foreclosure actions, and often offer lenders an expedited and less costly resolution of the situation.

Most lenders have specific criteria that relate to borrowers’ ability to repay the debt, in order to consider short sales. Some lenders will consider a short payoff only if the borrower can produce evidence of hardship. The lender determines if the seller is eligible to sell the home at less than the outstanding debt due to hardship. Owing more than the home or property is worth is not necessarily a hardship. Hardships include divorces, unexpected hospitalizations and medical expenses, job losses, deaths of family members or similar catastrophic situations. Additionally, a budget must show that the seller’s expenses exceed their income/assets, they are behind on their payments, and there is no way to repay the lender.

A property that is distressed or requires extensive repairs may also qualify. If the lender were to foreclose on this type of property, it would have to pay for all the repairs necessary to sell the property. A short sale may represent a more cost-effective way to pay off the loan. Steps of the Short Sale from the buyers perspective.

Steps to the Short Sale
  • Get your property listed and marketed for sale
  • Find a buyer and get purchase agreement accepted and agreed to by both buyer & seller, subject to short sale approval from lender(s) holding the mortgage notes.
  • Preliminary title report ordered, estimated HUD-1 calculated and drawn up
  • The completed short sale package reviewed and sent to the lender(s)
  • The lender receives the package and reviews for completeness. Incomplete packages are usually disregarded.
  • The lender then orders the BPO &/or Appraisal, usually within 30 to 60 days
  • The lender reviews and compares the values of the BPO/Appraisals to the purchase offer amount and net proceeds to the lender.
  • If all is in line, the lender forwards the package to the underlining investor for final approval, which could take 30-90 days for final approval

Depending on the institution, there may be multiple stages and negotiators handling the file. If there are no hangups there could be decisions of acceptance, counter offers, or rejections, hopefully within 60 to 120 days.

Short sales are time consuming and difficult. See Why Short Sales Can Fail page. Finding the right buyer for a short sale is a difficult task by itself. The buyer must be in the position to wait, and have the patience to wait month on end without any substantial updates. Then the sale could be denied by the lender, and in the mean time the buyer may have missed other purchasing opportunities. Buyers will also need to have their financing in place and be able to close the sale, usually within 30 days of receiving the short sale approval. Short sale approvals are usually valid for 30 days, extensions could result in additional fees and expenses which could cancel out the short sale. Buyers and sellers may need to be prepared for additional out of pocket expenses to settle at close.

Don't just walk away

Refinacing Options

Homeowners who are current with their mortgage payments may be able to take advantage of today’s mortgage rates and retain ownership of their home via refinancing to a 30 or even 15 year fixed rate loan through the Home Affordable Refinancing Act.

Some basic requirements: Owner occupied, 1-4 unit home, Owned or backed by Freddie Mac or Fannie Mae, Loan to value (LTV) ratios above 80% but not more than 125%, Must be current on existing mortgages, must have enough income to support the new mortgage payments.

  • Refinance could be an option
  • Lender Workout Solution
  • Sell and Bring in the difference in cash
  • Short Sale It
  • Deed in Lieu of Foreclosure
  • Let if Foreclose
  • Do nothing and walk away (we do not suggest this at all)
Lenders will often work with with a distressed homeowner to assist them with keeping their home. Workable solution may consist of reducing or rolling back interest rates, forgiving back payments, adding them to the loan amount, or possibly recasting the entire loan and wrapping all fees into a fixed rate mortgage. Loan modification could be a suitable solution. Lenders may entertain a loan modification if borrower is able to meet the requirements and guidelines. HAMP Home Affordable Modification Program may be able to assist struggling homeowners to stay in their homes. HAMP has a strict guidelines and requirements to be eligible: Owner occupied, 1-4 unit dwelling, unpaid principal balance that is equal to or less than $729,750 for single unit properties. Higher limits available for multiple unit dwellings. Loan originated on or before Jan 1st 2009, payments exceed 31% of borrower’s gross monthly income, Experienced a change in income of other financial hardship, at risk of imminent default or in default.
A short sale may be the best option for most homeowners that find themselves in distress and facing foreclosure. The short sale provides a window of opportunity to sell the property in which may partially satisfy the amount owed to the lender in order to release the lien against the property. The short sale is much more preferable on a borrowers credit score than a foreclosure. The Home Affordable Foreclosure Alternatives Program (HAFA) brought into effect November 2009 by the Obama Administration is designed to assist borrowers who meet the requirements and are eligible for the program, and are unable to keep their homes. Under this program borrowers an mortgage servicers are provided with incentives to help facilitate short sales or deed in lieu of foreclosure if the short sale is not successful.
A deed in lieu of foreclosure is when the borrower aggress to trade back the property to the lender in exchange for the cancellation of the note.
If the foreclosure sale date is just weeks away from taking place. We advise you to contact your lender immediately and see if there is any way of exploring alternatives to foreclosure. You would nee to delay or postpone the trustee sale date to move forward with any other alternatives (short sale).
If you are simply unhappy with the current value of the property or it is less than what you paid or owe, you should contact an attorney for advise. Simply walking away from your property could cause you unforeseen and addition financial consequences.
Testimonials

|

Nevada Desert Realty logo call 702-509-1446 for all your real estate needs.
Nevada Desert Realty
Klinger Real Estate Group
NVDRE B.1001526
40 E Horizon Ridge Pkwy, Ste 101
Henderson, NV 89002
info@hendersonnvproperty.com
(702) 509-1446
(702) 265-0029 emergency line
(702) 948-4910 fax