Las Vegas Homes, Condos, Land and Commercial Real Estate Blog

Las Vegas housing market is moving away from foreclosures and toward short sale homes for sale

Why didn’t the mountains of foreclosure homes that real estate analysts kept foolishly predicting will hit Las Vegas housing market materialize?

1: Nevada mediation that is enforced by Nevada Supreme Court has slowed down foreclosure process

2: Federal Government pressure on the lenders and it is working (Attention Obama Bashers)

3: Bankruptcy: Takes time, ensures that lender can’t come after the owner for specific performance (lender suing owner for the difference between the sale price and mortgage owed on home)

4: Banks have finally realized that short selling Las Vegas homes saves them about 10% versus foreclosing on the home

5: Banks are finally starting to streamline the short sale process and make listing or making offers on short sales as painless as it can become

How do short sale homes affect Las Vegas housing market?

If selling a Las Vegas short sale can mimic a non-distressed traditional sale, then why should the bank severely undercut prices to attract buyers?

The only difference between a regular sale home and a short sale home is that one or more lenders are involved and should OK the deal.  If any seller contribution or repair demands are involved in the transaction, these should be allowed by the lender too, that is it.

The reason that we have avoided listing or making offers on Las Vegas short sale homes comes from the difficulty involved in dealing with the lenders.

If the bank has set policies to help conclude the short sale process and close escrow within 30-45 days and if I can find the asset manager with one phone call and have him deal with my seller in my presence then the short sale process is not much different from a regular sale.

Now the lender doesn’t have to market their homes at 10%-20% less than non-distressed regular homes in order to attract buyers and this will help stabilize our housing market.

Lastly: As I have repeatedly stated Las Vegas homes that can be financed with a FHA, VA or conventional mortgage will not see significant price cuts, especially homes that are priced below $100,000. If a Las Vegas home for sale needs financing through a Jumbo Loan, more troubles are ahead.

I will write about why we will list and show Wachovia bank short sales homes in Las Vegas next.

Related blog posts: Las Vegas homes for sale – Las Vegas real estate market 2010

Related Web-Site links:

Las Vegas short sale homes or condos for sale

 Las Vegas foreclosed homes or condos for sale

 Las Vegas homes or condos for sale