Common Questions about Carson Valley Short Sales

    Carson Valley Nevada short sales are getting easier than just a few years ago, and the industry has change for the better significantly. There are more consistent guidelines being applied by lenders, but homeowners still have questions about the process and benefits of a short sale. In this post we are going to answer 4 questions that almost always come up with I am counseling a seller considering a Short Sale in Nevada.

    1. Why would I want to do a short sale? If you are experiencing a genuine financial hardship, it is in your best interest to avoid foreclosure if at all possible. First, no one wants a foreclosure on their credit history. It is very important to understand how a foreclosure affects your credit as opposed to a short sale. A foreclosure remains on your credit report for up to 7 years as an active account. This means it directly affects your credit rating for up to 7 years. When you consider a short sale as an alternative, a short sale settles your mortgage indebtedness for less than the full amount owed. When the escrow closes, so does the active reporting on your credit report. As time goes by, that short sale will have less and less impact on your credit reporting, because credit bureaus give less weight to accounts that are historical than accounts that are current. This doesn’t even begin to address the emotional anguish or social stigma associated with a foreclosure.
    2. Why would a bank accept a Carson Valley short sale? For banks, many of these decisions are strictly financial. Banks accept short sales when they determine that the financial loss from the short sale is less than the loss would be if they foreclosed. There are significant financial costs associated with a foreclosure that banks must bear, so often a short sale is a better alternative for them if a foreclosure is likely.
    3. Do banks always accept Carson Valley short sales? No. They do not. It is critical for anyone considering a short sale in Nevada to speak with a real estate professional who has a proven track record of success along with the education and experience necessary to work in this market specialty. That way, it will maximize your potential for success with your own personal short sale.
    4. Will a bank accept a short sale if the homeowner is current on payments? It really depends on the lender and the specific situation. Sometimes the banks will accept a short sale if the homeowner is current, however it does not happen very often. The best way to find out is to simply submit a short sale file to the lender. As real estate professionals, we can never advise a homeowner whether they should fall behind in their payments in order to qualify for a short sale. Homeowners pondering this question should seek legal advice from a Nevada attorney on this topic.

    Disclaimer: Short Sales are complex transactions involving many factors that are unique in every transaction. We strongly recommend anyone considering a short sale in Nevada to contact qualified tax and legal professionals in addition to speaking with real estate professionals to determine the best solution.

    Photos courtesy of BenefitIQ and Swodeck via This article originally published on on March 3, 2011.

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    Christianne O'Malley

    I am an award winning top-producing Realtor with over $300 million in lifetime sales. I represent buyers and sellers across Northern Nevada including Reno, Sparks, Carson City, Dayton, Virginia City, Minden, Gardnerville, Genoa and beyond.

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