Short Sale: A Definition for Las Vegas Homeowners

In the past short sales were rarely accepted by a bank or lender. Today, due to the economic changes and overwhelming market lenders and bankers are much more open to these transactions.

A short sale can be the correct solution for homeowners that owe more on their property than the property is worth and need to sell.

Simply put the definition of a short sale is: when a homeowner is "short" because the amount owed on the home is higher than the current market value. At this point, negotiation is entered into with the property owner’s lender to accept less than the full balance at the closing. The home is then sold to a buyer that closes on the transaction "sold short" of the total value of the mortgage.

To qualify for a short sale the homeowner must fall into any or all of the following circumstances:

Financial Hardship

- you are experiencing a situation that is causing you not to be able to afford your mortgage payments.

Monthly Income Shortfall

- your monthly income is not enough to cover your expenses.

Insolvency

- you do not have significant liquid assets to pay down you mortgage.

(There may be other reasons as well, but never "just because the home market is upside down".)