Financing in Las Vegas>Question Details

Mike Daniels, Other/Just Looking in Phoenix, AZ

I have a second home (condo) in las vegas and the value has fallen $50K below the amount on the note. The HOA

Asked by Mike Daniels, Phoenix, AZ Tue Jul 1, 2008

is being sued by the former director and they are charging the owners a special assessment. Normal monthly dies have skyrocketed. I can afford the payments but really don't want to. It is a non-recourse loan. Can i walk away or negotiate a short sale or deed in lieu? Comments or suggestions?

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3
Mike,

I am an expert in short sales and property in your situation. A short sale may be a possibility and so may a deed in lieu. I can actually negotiate with the bank for you to get you the best terms on either one. Many people do not realize that you can actually negotiate terms in regards to a deed in lieu. I may be able to get you some money by proceeding with a deed in lieu. Give me a call and I will discuss what I can do for you at no charge. It is definitely better than just walking away from the property without getting anything. Hope to talk to you soon!

Len McGuirk, Realtor
Prudential Americana Group - Las Vegas
(702) 203-6688
0 votes Thank Flag Link Tue Jul 1, 2008
thanks Diann,
I have though about the option of renting and taking the asset as a capital loss when i sell it. I did make sure the loan was recourse back to the property only and is in a LLC so i may well walk away from it, although am hesitant to do it. I have no problem with the loss of asset value but am troubled by the property management situation. Thanks again
0 votes Thank Flag Link Tue Jul 1, 2008
Mike, unfortunately this is a story we have heard many times over the past year. To qualify for a short sale, the seller must be able to prove that they have insufficient income to pay the monthly payment and that they have no other assets. But if you do have other assets, the bank will want those. For more information on short sales, try reading this blog article: http://las-vegas-real-estate-experts.blogspot.com/2008_04_01…

It may be possible to negotiate a deed in lieu of foreclosure if you only have one mortgage on the property. You will need to contact your bank's loss mitigation department and discuss that scenario with them.

And of course your third option is to walk away and let the bank foreclose on the property.

In any of these scenarios your credit will be adversely affected and it will be a full four years minimum under the current credit constraints before you will be able to purchase other real estate.

Have you explored the possibility of trying to rent the property out until the market improves? You will probably still have a negative cash flow, but perhaps that might be better than ruining your good credit if the negative monthly payment is not too high. If you would like to contact me at 702-596-7821, I will be happy to reach a property manager and find out what they think you might be able to get for rent on your unit.
0 votes Thank Flag Link Tue Jul 1, 2008
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