Richard Ballen, known as the Wizard of Las Vegas Short Sales, offers an outlined short sale process to avoid Las Vegas foreclosure. Short Sales in Real Estate – Nevada

Las Vegas, NV – June 7, 2010 – (RealEstateRama) — First order of business in the short sale process is the Short sale Package Submission – All banks are different. Certain banks want the entire shorts ale package up front, while others won’t look at anything until there is an offer. We will submit all information including the authorization to speak on your behalf, the listing contract, and the package when the bank will allow the submission. Proof of all faxes or emails to the bank will be uploaded into the RELAY software for your viewing.

The Timeline – The entire process typically takes 90-120 days The Offer- The law requires us that we present you with all reasonable offers. We will explain the offers, what they entail, and what they mean to you. You will have the right to accept, counter, or reject all offers. Our goal is to obtain an offer that proves to the bank that it will be more expensive for them to foreclose than to accept the loss on the provided offer. If the offer is too low, we will need to counter or reject. In some cases, especially where there is a tenant, the price has to be dropped under fair market value to encourage an offer. In this case, we will have to provide proof to the bank that we attempted to obtain a higher offer. This is done providing marketing proof, MLS records, and showing reports.

The Acceptance – Once we have an accepted offer, all information will be submitted to the bank. The bank will require proof of the offer, all counter offers, and a HUD. The HUD basically provides the bank with a bottom line loss when they include the brokerage fees and closing costs.

The Escrow – We will require the buyer to open escrow within 24 hours of your signed acceptance. Although they will be required to deposit an earnest money deposit, this does not mean you are entitled to it. The earnest money check is cashed and held in a bank account assigned to the title company. In most cases, the offer provides the buyer with financing contingencies that entitle them to a refund if they lose their financing. In addition, they will have a due diligence process (explained on the next item) that allows them an exit strategy due to inspections etc. That being said, both parties to have to sign a cancellation of escrow in order for the buyer to obtain a refund. You have legal rights as well and will have the right to refuse the reimbursement with your legal representation. The Escrow officer will be determined in the contract. Nothing will be done without both parties agreeing, that includes the actual closing of the home.

The Bank Process – Once the bank receives the offer and the short sale package, they begin their procedure. They will order what they call “Values”. The values are usually obtained by two reports. The first is a standard appraisal. The appraiser will evaluate your property based on the condition and nearby sales. The second is a Brokers Price Opinion, more commonly known as a BPO. The BPO is ordered from a non-affiliated real estate agent. In most cases, especially if your property is occupied, they will only do a “drive by” obtaining exterior pictures and statistics for the bank. The bank will then assign these values to a negotiator. The negotiator will then determine if the offer is acceptable. If you have multiple mortgages, this process has to be completed with each bank.

The Decision – Most of our short sales are being approved, but new rules and regulations are put into play every day. The most common reason for denial is liens. If you have not paid your HOA dues, you will be unable to pass a free and clear title if they have placed a lien on the property. We strongly encourage you to keep your HOA dues current. If there is a mechanics lien, it makes it difficult, but not impossible to close. If the offer obtained is high enough, and the bank is ultimately receiving their “bottom line”, it might be paid. Another recent struggle is the 2nd or 3rd mortgage. In the past, the additional mortgages would take $1,000 and write it off. Today their tougher. We must get all mortgages to agree. Without their approval, we have no sale. Some banks have a standard (we won’t take less than ___dollars or ____percent of the sales price) and some are more flexible. We won’t know until we get into the details. Once the bank(s) approve, they will give   us a written approval with terms. You sti ll have to agree to sell. If you don’t agree with their terms, you don’t have to agree to the short sale either.

The Commissions – This is the good news. You do not pay the brokerage/agents commission, the bank does. The goal here is for the loss of your home to be your entire expense. Although we have a transaction fee, we ask the bank to pay that as well. The only thing you may have to pay is liens or HOA arrears if they can’t be negotiated.

The Closing – This is the best part. Once the acceptance from the bank is handed down, the HOA (home owner’s documents) package is approved, and the due diligence is completed, the buyers & sellers are brought into the Title Company to sign all documents. The buyer’s funds are deposited (usually within 24 hours – 72 hours of signing), the deed is recorded, and you are done. You must vacate the property PRIOR to closing. In our experience, it is best to vacate the property 72 hours prior to closing (provided both parties have signed). This allows the buyer to complete the walk through on a vacant property. This is not required, just suggested. We suggest you have all utilities scheduled for shut off on the next MONDAY after closing. This way, if there is an extension , you are not in the property with no power, gas or water. Please remember to forward your mail to your new address.

The End – Hopefully a smooth process and you are now free to begin the next chapter of your life!

Richard Ballen, who prides himself on his problem solving skills, attends Short Sale Training and classes and stay up to date on bank requirements and policies. Ballen is very successful in marketing & selling Las Vegas, North Las Vegas, and Henderson Short Sales and helps home sellers valley wide. He holds a high standard, and practices professionalism, honesty, and ethical practices at all times. Unethical practices or the “encouragement” to enforce a short sale are not tolerated by Richard.

Richard Ballen, The Wizard of Las Vegas Short Sales, works his magic and get’s the deal done!

About Richard Ballen

702-604-7739 – www.RichardBallen.com
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Richard Ballen, A Realtor specializing in Las Vegas short Sales and the Short Sale Process uses outline for Short Sale Process in Nevada, helping Home owners avoid Las Vegas foreclosure. Short Sales in Real Estate – Nevada

For help with your Las Vegas Real Estate, Equity or Negative Equity – Contact Richard Ballen, The Wizard of Real Estate. Richard will work Magic with your Las Vegas Short Sale, Henderson Short Sale, or North Las Vegas Short Sale.

CALL 702.604.7739 – E-MAIL sold (at) richardballen (dot) com – www.TheLasVegasShortSaleSpecialist.com  Richard Ballen – The Las Vegas Short Sale Specialist