Foreclosure in 89121>Question Details

Jan, Both Buyer and Seller in Las Vegas, NV

I need information on a Short Sale and Possibly Forecloser?

Asked by Jan, Las Vegas, NV Thu Mar 5, 2009

I own a condo here in Las Vegas. I purchased it in 2005 at $150,000 with hopes to sell it in a couple years and relocate with my family. I could not sell it for 3 years because of a soft pre-payment penalty which amounted to about $40,000 (INSANE!!!) My third year was up in August 2008 and our condo is now worth $40,000-70,000 (There is one pending for $38,000). I am no longer working and we have had a major income loss because I am not working. Our savings is being depleted and we are working on a possible short sale. I am very scared because wedo have some assets like a CD,bonds, and another savings account that my inlaw has for us. We can't really touch any of them and I'm worried that the bank will not see our hardship because of that and eventually come after us if we forclose. We can't afford the condo because I am not working, our basic survival needs (food, fuel,power bills ect.) We have a new baby, and have nothing valuable that we have bought. What do I do? Consequences?

Help the community by answering this question:


Hi Jan,

I just wrote a detailed blog on this under BLOGs and TIPs on my website called Recovering from Bankruptcy and/or Tough Financial Times.

If you think my team can help, call me.


James Bellile
0 votes Thank Flag Link Thu Oct 27, 2011
Hi Jan:

I am very sorry to hear about your situation. Let me assure you, you are not alone. My entire business is focused around helping homeowners that are upside down in their homes and suffering a financial hardship avoid foreclosure. I have an very high success rate with selling distressed properties. Your hardship seems sincere and you should have a good chance of getting your lender to approve a short sale. I do not think a loan modification will work for you because you are no longer employed. But, it never hurts to ask your lender if you qualify for modification - assuming you want to keep the condo.

Las Vegas is seeing an increase in home sales over 100% over last year. If your property is marketed and priced correctly, it will sell. If you would like to discuss the specifics of your situation privately, please feel free to give me a call. Finally, I am not sure your condo is currently listed with a brokerage, but if so, my response is not meant to be a solicitation of that listing.

Take care,
Nichole LaVigne
Prudential Americana Group Realtors
0 votes Thank Flag Link Wed Apr 1, 2009
Best to get started now on the short sale. Gather all of your financial docs together and speak to an experienced agent. You will need tax returns, bank statements, W2s, etc. Additionally, draw up a hardship letter and keep to a maximum of one page. Banks have become more willing to work with homeowners regardless of whether or not you have a CD on the side.
0 votes Thank Flag Link Fri Mar 6, 2009

You have some good answers below already. There is one item I wanted to add. If you had a true soft prepayment penalty on your existing mortgage you could have sold the condo and not had to pay any pre-payment penalty. The soft prepayment means that you can not refinance the existing loan without having to pay the prepayment penalty. When the prepayment penalty is hard then you have to pay the penalty any time you pay off the loan regardless of if it is due to selling or due to refinancing.

I spent over 10 years working in the mortgage industry before I got my Real Estate license.

I think that doing a short sale is your best option when considering your situation you described above.

Ron Johnson
Elite Realty
0 votes Thank Flag Link Fri Mar 6, 2009
I think you've got a very compelling case for the short sale. I don't think the assets will be an issue in getting your short sale approved. You mentioned you are "working on a possible short sale". Do you already have the condo listed with an experienced short sale agent? I believe the short sale with the bank agreeing to the "forgive" the difference would be the best solution based on the situation you described.

There have been many changes to what lenders are willing to do, so if you want to stay in the home, you may want to look into loan modification before attempting a short sale. If you do look into loan modification, I would avoid any company charging a non-refundable upfront fee. The other thing to consider about loan modification is if you're not making payments, don't wait too long to attempt a short sale. I've seen some people trying to do a loan modification give up and try to short sell, but loose the home because there wasn't enough time before the foreclosure sale.

Damon Botticelli
Realty One Group
(702) 523-7713
0 votes Thank Flag Link Thu Mar 5, 2009
Jan ,
Your scenario is complicated but not new to this area with housing and unemployment . It would be better to discuss this over the phone or on private email. I would have a few questions for you. Congratulations on the new baby.

Dave Grant
0 votes Thank Flag Link Thu Mar 5, 2009
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