FAQ

1.  How long can I stay in my home if I do a short sale?

A =  The timeline for the bank to take possession of your home in the event of foreclosure in Nevada is about 18 months.  If you default and have equity in your home, the bank is likely to sue you in a judicial foreclosure and take the home much faster.  If you do a short sale, that timeline can be extended much longer.  When you list your home as a short sale, the foreclosure process is suspended usually for as long as it takes for the short sale to be successful.  The time to complete a short sale can be quick or long, depending on how you approach it.  For more information, give Leslie a call and request a free consultation.

A =  Nothing.  In a short sale situation, your mortgage company takes care of all the expenses associated with the sale.  The taxes, insurance, title company fees, realtor commission, and any expenses the buyer may request the “seller” to pay on their behalf are covered by the bank.  They receive the “net proceeds” of the sale, so the bank receives whatever is left from what the buyer pays or the home minus all encumbrances on the house and closing costs.  The seller pays ZERO and receives ZERO.

A = NO.  When you do a short sale, the transaction must be an “ arms length transaction ”.  This means that the buyer cannot be related to the seller or have any other agreements such as a lease agreement to rent the house back to the seller or sell it back to them in the future.  No immediate family can be the buyer, and acknowledgement of this must be signed and notarized by all parties at closing.

4.  Do I owe the difference if I short sale?

A = In a short sale, the net proceeds to the seller must be ZERO.  The one exception is when the seller is given a financial incentive to complete the short sale.  Most sellers receive $2,000 to $3000 to help assist them with relocating, but I have had sellers receive as much as $60,000 from their bank to cooperate with a short sale.  Every situation differs.  For more information on your specific circumstance, call Leslie for a free consultation.

5.  Do I pay taxes on the forgiven debt if I do a short sale?

A=  You are not liable for any taxes on the forgiven debt as long as you receive a full waiver of deficiency when you do a short sale.  I you do not see “Full Waiver of Deficiency” or “Release of Debt” on your short sale approval letter, do not proceed with the short sale.  If you push back on the bank and refuse to accept those terms, they eventually back down.  No always, but most of the time.

6.  How do I know if I qualify for a short sale?

A = A real estate agent who is experienced in short sales or an attorney can review your situation with you and tell you if you qualify for a short sale and; whether it is the right move for you versus filing for bankruptcy or letting our house foreclose.  Everyones situation is unique.  There are a lot of things to consider when faced with a potential short sale.  But there are 5 key reasons why your bank will allow you to do a short sale.  This are:  1.  Death  2.  Terminal Disease  3.  Divorce  4.  Decline in Income  5.  Increase in Expenses.  The banks have very specific criteria for allowing short sales to be approved.  An experienced real estate agent will know how to present your situation to your mortgage company in a manner that they will accept.  Do not use someone new or be a guinea pig in this process.  That can cause irreversible damage.

7.  When can I buy again after I do a short sale?

A = This depends on how you plan to pay for your replacement property.  If you are utilizing cash or private money, there is no delay.  If you use FHA, the wait is 2 or 3 years.  Conventional is typically 4 years.  Leslie can put you in touch with someone who can help you get back on track to get into home ownership as soon as possible after a short sale.

8.  How much is my home worth?

A = Leslie and her team will be happy to do a free home value analysis for you at anytime.  Just call the 775-815-9511 and ask.  Or click the “what is my home worth” tab on this website and we will get back with you shortly.

9.  How do I know if it is the right time to sell my home?

A = Leslie researches the market early every morning.  She always knows whether it is a sellers market or a buyers market.  If you are considering buying or selling, just call for a coffee appointment with Leslie and she will meet you and give you the latest market data to help you understand if the time is right for the goal you wish to accomplish.

10.  If my spouse dies, do I have to go through probate court?

A = YES !!!  And probate court is not fun or quick.  I cannot stress this enough:  IF YOU DO NOT HAVE A TRUST…..get one.  Wills are not of any value if someone on title dies.  No trust = probate court every time.  It is expensive, lengthy, and you cannot do anything with the property until the judge rules on your case.  And the mortgage payments do not stop.

11.  If I filed for bankruptcy, how long before I can buy again?

A = IT DEPENDS.  Honestly it depends on a lot of things.  Call the office to schedule for a consult and Leslie will explain this to you.

12.  Should I use a real estate agent to represent me when I buy new construction?

A = YES.  You do not save money by not using a realtor and then no one is watching out for your best interest.  There are a lot of incentives, upgrades, hidden loan fees with the preferred lender and title company, and so much more that the builder and their representatives will not tell you about.  Their policy is “You don’t ask, We don’t tell”.  Take your real estate agent with you the first time you go look at new homes.  You will be glad you did.