Thursday, September 27, 2012

What is going on with Short Sales in Las Vegas

What is happening in a Las Vegas with all the short sales? It is amazing that the short sale process is taking over the market.  Over half of the sales in August 2012 were shorts sales and only 16% of sales for August were bank owned sales. 

The climate for real estate has changed greatly over the past several months and the inventory is getting cleared but it is creating a problem.  There is not enough inventory on the market due to the abundance of underwater sellers.  There are hundreds of people who would love to sell if they could get their home sold and make a profit or at least break even.  Something has to give in Las Vegas.  There is no supply to fill the demand for homes.  Even with weaker demand, the limited number of units for sale, in the 4000 per month range, is not nearly enough to accommodate buyers.  It is as if another bubble is being created because of the lack of inventory.  It looks to be several years before things will be back to level in Las Vegas and the economy is suffering because of the circumstances

The willingness of banks to entertain a short sale is becoming more common place as banks realize the underwater problem is never ending.  If they do not clear some of the underwater homes from the market, the economy will continue to suffer as will home values.  The short sale also gives banks the ability to short circuit some of the issues they face due to AB 284.  AB 284 is the law that says original documents are needed for the bank to claim ownership and to foreclose on a property.  The short sale avoids this problem all together so the banks are very likely to do a short sale for you if you have one of those loans that was passed from company to company.  If there is any question about the original documentation for your loan, you can more often than not, get approval for a short sale. 

The short sale is the quickest and easy way for the bank to get out from under several problems and the most important being that they don't have the original paperwork.  You could fight for years to keep your home because bank does not have originals or you can cut a deal and get out from under the debt now and get on with your life. 

Get more information on Short Sales in Las Vegas HERE

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