Las Vegas and Clark County lead the country in Short Sales.  In January of 2009 approved short sales were less than 200 properties.  By January of 2010 approvals were over 700 a month. 

In early 2009 Short Sales averaged 7 to 8 percent of the total home closings.  By end of year that percentage had increased to nearly 25% of the total market of closings.

There has been a dramatic decrease in foreclosure activity in Las Vegas.  With the Federal Treasury putting pressure on Banks to either offer loan modifications or approve short sales, banks are foreclosing on fewer properties.  The Treasury Department is offering incentives on short sales by providing a $2,500 subsidy, $1,000 to the servicer and $1,500 to the seller for moving expenses.  In addition investors can get $1,000 by allowing subordinate lenders to get $3,000 in proceeds from the sale.  The program is effective April 5th but servicers can implement it earlier.

It is costly for lenders to go through the legal process of foreclosing.   Short Sales are so much better for neighborhoods.  Sellers selling their home on a short sale are generally still living in and caring for the home during the marketing and closing process.  This enhances the neighborhood because that Short Sale is one less foreclosure in the community.

Banks have really gotten organized in the past year to more effectively process and handle these Short Sales.  Many Banks have pulled Asset Managers from their Foreclosure departments and moved them to their Loss Mitigation (Short Sale) departments as Negotiators.  In addition Banks have moved the entire process from a pen and paper system to the same on line transaction systems that they are using to process their Foreclosures. 

In general a Short Sale is a more acceptable solution to most lenders than foreclosure.   Working with the bank to find a solution through Short Sale rather than walking away from the property demonstrates  higher level of cooperation.

Homeowners should consult their attorney and Certified Public Accountant to review the potential consequences of Short Sale and Foreclosure.  Windermere Real Estate has partnered with Distressed Property Consultants an attorney backed Short Sale processing firm that works in concert with the professional Windermere agent and provides attorneys to represent the homeowner to advise the seller and negotiate with the lender to minimize and/or alleviate deficiency judgments and promissory notes. 

For more information go to:   www.choosewindermere.com/Nevada/Short Sales