Legal representation is recommended to manage residential short sales in Nevada. A short sale attorney can review all documents, advise the seller of their rights, obligations, and legal options, negotiate with lenders and help ensure that the sale is structured so clients avoid inequitable terms and unexpected expenses. Mortgage companies have teams of lawyers to protect their interests. Real estate agents market properties, schedule showings, and collect offers, but they are not able to provide legal advice to home sellers.
How a short sale works in Las Vegas, NV
When a homeowner needs to sell a property and owes their lender more money than the real estate is worth, they may be able to do a short sale to avoid foreclosure. The lender must approve the short sale and has the final authority to approve the terms of any contract. The most important part of any short sale is the deficiency waiver. If a home has a loan balance that is more than its market value, it is highly likely that there will be some amount of the loan that remains unpaid after the sale. The deficiency waiver releases the lender’s claim on this unpaid balance and ensures they can’t sue the seller for that amount at any point in the future. A short sale may have an adverse effect on the borrower’s credit report, but it is not as damaging as a foreclosure.
Nevada short sale laws
An experienced short sale attorney is familiar with current Nevada laws and can advise sellers about matters like hardship letters, deficiency waivers, their legal options and the associated ramifications, and how to prevent banks from performing abusive lender practices and structuring sales that negatively impact the sellers’ financial well-being. Nevada statutes intended to protect borrowers can actually work against home sellers if they do not fully understand their short sale agreements. In a “Recourse State,” lenders may be able to seek a personal judgment against the seller unless certain conditions are met.
Loan modification, bankruptcy, or short sale?
Homeowners’ financial situations may differ and their best course of action may vary when they owe more on their mortgage than the market value of their home. Loan modifications, bankruptcies, and short sales all involve legal agreements that require detailed explanations and serious consideration before moving forward.