Reno, Nevada ~ What is a short sale?
Reno, Nevada Short Sales! ~ We have been hearing this term for several years now and you may just be wondering what a short sale really is. There are many negative things that have been said about short sales over the years but a Reno Short Sale can actually be an excellent solution for those who absolutely need to sell their home but are unable to do so because they owe more than what their home is actually worthy.
Luckily, many positive changes with lenders and banks have occurred in recent years that actually make it easier for real estate agents to negotiate a short sale and help a home owner receive approval from their lenders. Recent corporate policy changes, market conditions and the Obama administration have all played a roll in improving the short sale process.
But to be clear, here is a more technical definition of a short sale:
A Reno, NV short sale is when a seller owes more on their home than it will sell for in today’s real estate market. A homeowner is “short” when the amount owed on his/her property is higher than current market value. For a homeowner to qualify for a short sale, they must be faced with a hardship, their monthly income must fall short of their living expenses and they must be able to prove these things to the lien holder(s).
Unlike a bank owned home, a short sale seller still owns the property, so a buyer will present and negotiate an offer with the seller, not the lien holder(s). After the seller and buyer reach an agreement the seller will them submit the executed contract along with their short sale package for approval by the lien holder. All of the terms, sales price and conditions are all subject to the third party (Lien holder) approval.
Both buyer and seller need to keep in mind that just because the two of them came to terms does not mean the sellers lien holder(s) are going to accept the terms they both agreed to. The waiting for the lien holder(s) to approve or deny the short sale can take several months. Patience is required for both the buyer and the seller.
This process may sound simple enough, but it is a complicated process that often requires an experienced person (real estate agent) who understands the short sale process, who is an excellent communicator with negation skills and who can help you understand how the all the pieces of the short sale puzzle fit together. When hiring a real estate agent to list and sell your Reno home as a short sale, be sure the Reno agent you hire possesses these valuable skills. This will more than likely mean the difference between receiving a short sale approval or a short sale denial.
Feel free to call me to discuss all of your Northern Nevada Short Sale questions. I am here to help!