Las Vegas Nevada Real Estate Blog

Buyers often ask about the difference between a Foreclosure and a Short Sale.  A short sale implies a late payment status;  the lender(s) accept a price that is less than the outstanding loan(s) and the shortage is forgiven.  A foreclosure is a situation in which the lender has actually taken the property from the owner; the deficiency is not forgiven and, in some cases, the owner is still responsible for repayment of that shortage.  In a foreclosure, the lien is not satisfied.  Although a short sale does have an impact on an owner’s credit rating, it is, in most cases, preferable to a foreclosure.  Short sales require the sale of the property with the permission of the lender(s).  An advisor, acting on behalf of the lender, will review the individual circumstances and negotiate the final sales price.  Circumstances that are considered include job loss, transfer, divorce, medical problems and other unusual situations.  Each case is evaluated on its own merit, with no guarantee that the lender(s) will accept the sales price that an owner has set.  In both short sales and foreclosures, the negotiation and closing process generally takes longer than a traditional purchase.  Buyers considering these types of purchases are best served by dealing with a real estate professional.  Call Las Vegas Properties at 1-888-876-8383 with specific questions about short sales and foreclosures in the Las Vegas area.